Drew Dixon
If tax credits for the federal Inflation Reduction Act end at the conclusion of 2025, the Center on Budget and Policy Priorities says the impact on the Affordable Care Act (Obamacare) could be catastrophic.
The center released a new study showing health care costs could spike for the elderly and middle class families. While the tax credits aren’t set to expire until the end of 2025, the center is warning that if Republicans have their way, the financial burden could be crippling.
“Republicans are fighting to let these tax credits expire, which will make health care more expensive for the middle class,” the study concluded. “Hardworking families are counting on lawmakers to act, but Republicans only want to raise costs on middle-class families while handing out tax breaks to the rich. If Republicans get their way, premiums will skyrocket for over 20 million Americans, and 5 million Americans will become uninsured.”
The study found that should the tax credits expire, some families could see annual premiums jump more than $30,000. The nationwide average is less daunting, though still significant. The study estimates that on average a family of four would see monthly premiums skyrocket from about $900 now to nearly $1,600, an increase of more than $8,000 a year.
The study noted some of the states that could be hardest hit are represented by Republicans in the U.S. Senate.
“Premiums would at least double In 12 States, all represented by Republican senators. Premiums currently average about $672 a year for residents who receive tax credits in states that use healthcare.gov. Without the enhanced premium tax credits, the average annual premium payment would rise by 93 percent ($624) to $1,296 a year,” the study found.
While some Republicans may be tempted to let the tax credits expire, the study found that could be politically challenging for those wanting to get re-elected since polls conducted by Keep Americans Covered found 86% of voters endorse extending the enhanced premium tax credits.
