Many Americans who buy health insurance in the public marketplace are eligible for a refundable premium tax credit to help cover the cost.
The credit is typically available to taxpayers with household income between 100% and 400% of the federal poverty line. The American Rescue Plan Act generally eliminated the upper income limit and increased the amount of the premium tax credit. The percentage of household income that individuals are required to contribute to their health insurance coverage decreased to 9.61% in 2022.
As part of the Inflation Reduction Act, Congress extended the expanded COVID-era premium tax credit subsidies through 2025. Now, many are calling for Congress to consider extending the expanded subsidies beyond 2025 or even make them permanent.
We asked two professors and authors of ALM’s Tax Facts with opposing political viewpoints to share their opinions about whether Congress should act to extend or make permanent the expanded COVID-era health insurance subsidies.
Below is a summary of the debate that ensued between the two professors.
Their Votes:
Their Reasons:
Bloink: The enhancements to the ACA subsidies have allowed many of the lowest-income Americans to qualify for zero-dollar health insurance for the first time ever. If these subsidies expire, millions of Americans will see their health insurance premiums increase, which can often make it impossible for families to afford health coverage. Individuals without insurance make health coverage more expensive for everyone. Extending the existing COVID-related expansions of premium assistance seems like a no-brainer, given that they’re clearly working.