12.06.2024 / Statement

CBO: Not Extending Enhanced ACA Subsidies Will Cause Significant Coverage Losses

WASHINGTON, D.C. – Anthony Wright, executive director of Families USA, released the following statement on the Congressional Budget Office’s (CBO) new report on the effects of not extending the enhanced premium tax credits.

“The current subsidies were enhanced in the American Rescue Plan and then extended as part of the Inflation Reduction Act and are due to expire at the end of 2025 if Congress does not pass an extension. According to the CBO, if they are not extended, the number of people without health insurance will increase by 2.2 million in 2026, growing to nearly 4 million in the years after that. As a result, on average, those with health insurance will see their unsubsidized gross monthly premiums increase by as much as 8% each year.

“For people who now receive premium assistance, the increases will be far steeper: Taking into account the cuts in premium assistance, nonpartisan organizations, such as the Center on Budget and Policy Priorities, report that people will experience estimated premium increases ranging from 41 to 218 percent, with a median increase of 91 percent—a near doubling of their monthly costs.

“For nearly 20 million Americans, these enhanced tax credits have been the difference between getting access to the health care and coverage they need or going without it. This latest report makes clear that if Congress does not act, millions of Americans will lose their coverage, and millions more will see their monthly premiums spike significantly. At a time when so many families are struggling to pay for the basics, these tax credits have been a literal lifeline for millions of people to get health care they can afford.

“Voters just made it clear in the 2024 election that they want action to lower costs–and so it would be cruel to have the result be inaction that allows these tax credits to expire, and monthly health care costs to jump. For many millions of working Americans, premiums will double. For some, the spike will be not just hundreds but thousands of dollars of additional costs, leading many millions to lose coverage altogether. Congress must protect the health and financial security of our nation’s families right now by extending these critical tax credits.”

For more information on the importance of the enhanced ACA subsidies, please refer to Families USA’s fact sheet here. For additional data on the impact, see these resources.