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majority Supports Extending ACA tax Credits Despite Cost Concerns
A new KFF Health Tracking Poll reveals that most Americans have limited awareness of the enhanced tax credits for Affordable Care Act (ACA) Marketplace health coverage, which are set to expire at the end of 2025. Despite this lack of awareness, the poll indicates strong initial support for Congress to extend these subsidies, even among Republicans.
The American Rescue Plan act (ARPA) in 2021 and the Inflation reduction Act (IRA) in 2022 temporarily enhanced and then extended these tax credits, leading to a near doubling of enrollment in ACA Marketplace plans. Though, if Congress fails to act, premiums are projected to increase by over 75% on average, potentially leaving four million people uninsured.
The poll explored how arguments for and against extending the subsidies influence public opinion. While highlighting the significant federal spending and increased budget deficit associated with extending the credits does decrease support, a majority of adults still favor extension. Conversely, emphasizing that allowing the credits to expire woudl make health insurance unaffordable for many and cause millions to loose coverage substantially increases support across all partisan groups.
What are ACA Enhanced Subsidies?
The Affordable Care Act (ACA) provides subsidies to help individuals and families purchase health insurance through the Health Insurance Marketplace. These subsidies, in the form of tax credits, reduce the monthly premiums that people pay. The American Rescue Plan Act (ARPA) and the Inflation reduction Act (IRA) temporarily enhanced these subsidies, making more people eligible for greater financial assistance.
Without congressional action,these enhanced subsidies will expire at the end of 2025. This means that many people who currently receive financial assistance to purchase health insurance will see their premiums increase significantly. Some may no longer be able to afford coverage and could become uninsured.
Frequently Asked Questions
- What happens when the enhanced ACA subsidies expire?
- If Congress does not extend the enhanced ACA subsidies, the cost of premiums for people who buy their own insurance through the ACA Marketplace will increase significantly. Millions of people could lose their health insurance coverage.
- Who is affected by the expiration of the enhanced ACA subsidies?
- Individuals and families who purchase health insurance through the ACA Marketplace and receive financial assistance in the form of tax credits will be affected. Middle-income individuals who became newly eligible for subsidies under the enhanced provisions will also be impacted.
- What is Congress doing about the expiring ACA subsidies?
- Congress is currently debating weather to extend the enhanced ACA subsidies. The “One Big Beautiful Bill Act” passed by the House does not include an extension. The future of the subsidies remains uncertain.
- Why are the ACA subsidies expiring?
- The enhanced ACA subsidies were initially implemented as temporary measures to help people afford health insurance during the COVID-19 pandemic. The extensions provided by the Inflation Reduction Act were also temporary.
Sources
- KFF Health Tracking Poll
- KFF: How the American Rescue Plan Act Affects Subsidies for Marketplace Shoppers and People Who Are Uninsured
- KFF: Inflation Reduction Act Health Insurance Subsidies: What Is Their impact and What Would Happen If They Expire?
- KFF: A Look at ACA Coverage Through the Marketplaces and Medicaid Expansion Ahead of Potential Policy Changes
- KFF: How Much more Would People Pay in Premiums If the ACA’s Enhanced subsidies expired?
- NBC News: Millions risk losing Health insurance if Trump Wins and ACA subsidies End
