A group of House lawmakers unveiled a “statement of principles” to temporarily extend the ACA enhanced premium tax credits as the federal government shutdown recently entered its fifth week.
Reps. Don Bacon, R-Neb., Tom Suozzi, D-N.Y., Jeff Hurd, R-Colo., and Josh Gottheimer, D-N.J., said in a Nov. 3 news release that they “may not agree on every ideal outcome,” but have identified a “fair, reasonable path forward” on the future of the tax credits.
The plan calls for a two-year extension of the enhanced subsidies and an income cap phased out between $200,000 and $400,000. The enhanced subsidies are set to expire at the end of 2025 without congressional action.
The proposal also calls for guardrails to prevent improper payments. ACA marketplaces would be required to confirm recipient eligibility with the Death Master File. It also calls for both political parties to identify ways to crack down on brokers and agents engaging in fraud when enrolling people in ACA plans and for marketplaces to better notify beneficiaries about the value of the enhanced tax credits they are receiving.
“Congress is gridlocked, and too many Americans have lost faith that we can work together,” the lawmakers said in the release. “But here’s the truth: Democrats and Republicans can sit down, listen to one another, and find common ground, especially when it comes to lowering health care costs.”
Premium tax credits were originally available for enrollees making between 100% and 400% of the federal poverty limit. In 2021, the American Rescue Plan Act increased the amount of these tax credits and expanded marketplace eligibility to households with an annual income more than 400% of the federal poverty limit, capping out-of-pocket premiums for a benchmark plan at 8.5% of income.
Since the introduction of the enhanced credits, ACA marketplace enrollment has more than doubled from 11.4 million in 2020 to 24.3 million in 2025, according to KFF.
