"If Congress does not extend the enhanced premium tax credits, it will also trigger a so-called " subsidy cliff," or strict income maximum that abruptly cuts off subsidies to households with incomes that are over 400% of the federal poverty level. That would raise the costs of those healthcare plans by an estimated 75%, according to KFF, a nonpartisan health policy research group."
"Currently, 92% of Americans enrolled the ACA marketplace plan receive some type of enhanced subsidies. That's 22 out of 24 million people. However, not all would be affected by the subsidy cliff. Letting the credits expire could send insurance skyrocketing to such high levels that many Americans wouldn't be able to afford their current plans, or worse, keep their healthcare at all. One estimate found average family premiums could triple from $1,200 to $3,553 a month if the credits expire."
Millions of Americans who purchase health insurance through the Affordable Care Act (ACA) face loss of enhanced premium tax credits set to expire at the end of 2025. Ninety-two percent of marketplace enrollees — about 22 million people — currently receive these subsidies. If Congress does not extend the credits, a subsidy cliff at 400% of the federal poverty level would abruptly cut off subsidies for higher-income households and could raise plan costs by roughly 75%. Average family premiums could jump from $1,200 to $3,553 per month according to one estimate. A congressional vote is expected in mid-December amid partisan disputes and presidential opposition.
Read at Fast Company
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