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HAP Urges Congress to Extend ACA Subsidies

July 18, 2022

HAP and a coalition of state health care organizations today urged Pennsylvania’s Congressional delegation to preserve the Affordable Care Act’s (ACA) premium tax credits that have helped thousands of Pennsylvanians sign up for health insurance.

During 2021, the American Rescue Plan Act included provisions to make ACA plans more affordable by capping premiums at 8.5 percent of income and making the credits more generous for lower income families. The tax credits are set to expire at the end of the year.

Without these expanded subsidies, Pennsylvania could see a 12 percent decline in marketplace enrollment and a 7 percent increase in the uninsured rate from 2022 to 2023, the letter said.

Here’s what you need to know:

  • National enrollment:  The expanded subsides led to a record 14.5 million people signing up for health care coverage through federal and state exchanges during the most recent open enrollment period.
  • Statewide:  In Pennsylvania, enrollment in the exchange increased from 331,825 people in 2020, to 374,776 people in 2022.
  • The stakes:  If the tax credits expire, the lowest income enrollees could see their premiums increase from less than $1 per month to $26 per month (a 2,500% increase), while the highest income enrollees could see their monthly premiums increase from $425 to $577 (a 36% increase). Enrollees with income higher than 400 percent of the federal poverty level would no longer qualify for tax credits at all.
  • Call to action:  “We ask you to make these expanded tax credits permanent to ensure a stable health care market that provides access to high-quality and affordable coverage for all Pennsylvanians,” the letter said.

The letter is available to review online. Congress is considering the extension of ACA subsidies as part of its discussion around advancing a reconciliation package. HAP will continue to provide updates to members on this advocacy effort to make expanded tax credits permanent and ensure a stable health care market for Pennsylvania.

For more information, contact John Myers, vice president, federal advocacy.