Expiration of health tax credits carries costly consequences

Affordable Care Act coverage will more than double in cost if Congress lets enhanced premium tax credits expire at the end of this year. An analysis by nonprofit KFF finds that enrollees would save $1,016 if Congress extends the credits, but premiums could rise a staggering 114% if the credits expire. The credits were introduced in 2021 and later extended through 2025 and now cover more than 24 million people. Republicans largely want to end the credits, while Democrats strongly support them. The analysis notes that ACA Marketplace insurers are proposing to raise rates by 18% next year because of rising health care costs and the expiration of the credits — “the largest rate increase since 2018.” Another report finds that hospitals, physicians and other providers could lose $32.1 billion in revenue if the credits expire.