If you buy health insurance via the federal marketplace, your premiums could increase significantly after 2025 — unless Congress takes action.
The premium tax credit makes health insurance purchased via the marketplace more affordable. Participants can use the credit to lower insurance premiums upfront or claim the tax break when filing their return.
The credit was temporarily enhanced via the American Rescue Plan Act during the Covid-19 pandemic. The legislation covered plans in 2021 and 2022, but the Inflation Reduction Act extended that benefit through 2025.
If the benefits sunset after 2025, “virtually everybody would face higher premiums,” according to Gideon Lukens, senior fellow and director of research and data analysis for the Center on Budget and Policy Priorities, who wrote about the expirations this month.
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The White House in January reported record-high enrollment in marketplace plans for 2024, with more than 21 million participants.
In his fiscal 2025 budget request, President Joe Biden proposed making the premium tax credit expansion permanent. He briefly plugged the program’s benefits for communities of color during the first presidential debate on Thursday.
However, making the program permanent would increase the federal budget deficit by $335 billion from 2025 to 2034, according to the Congressional Budget Office and Joint Committee on Taxation.
Former President Donald Trump’s campaign did not respond to CNBC’s request for comment on the program.
Your marketplace health insurance could get more expensive after 2025
