Possible Marketplace Tax Credit Extension Raises Republican Hackles

Extending enhanced premium tax credits for the Affordable Care Act individual marketplace would cost the federal government $134 billion if extended from 2025 to 2029 and $383 billion if extended from 2025 to 2034, according to a new projection from the Congressional Budget Office (CBO). The federal agency’s projection also predicts that “an average of 3.8 million more people” per year would have health insurance than if the premium tax credits were allowed to expire. A more in-depth CBO “score” of extending the tax credits is also in the works following a request by Republican leadership in the House of Representatives — who seem poised to oppose any move to extend the tax credits.

Congress must extend the enhanced tax credits — called advance premium tax credits (APTCs) — which were initially passed as part of the 2021 American Rescue Plan Act (ARPA) and extended as part of the 2022 Inflation Reduction Act (IRA). If Congress doesn’t act, the credits will expire at the end of the 2025 plan year.

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Peter Johnson

Peter Johnson

Peter has worked as a journalist since 2011 and has covered health care since 2020. At AIS Health, Peter covers trends in finance, business and policy that affect the health insurance and pharma sectors. For Health Plan Weekly, he covers all aspects of the U.S. health insurance sector, including employer-sponsored insurance, Medicaid managed care, Medicare Advantage and the Affordable Care Act individual marketplaces. In Radar on Drug Benefits, Peter covers the operations of (and conflicts between) pharmacy benefit managers and pharmaceutical manufacturers, with a particular focus on pricing dynamics and market access. Before joining AIS Health, Peter covered transportation, public safety and local government for various outlets in Seattle, his hometown and current place of residence. He graduated with a B.A. from Colby College.

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