Expiring Tax Credits Threaten Health Coverage for Millions in 2025

The Looming Expiration of ACA Tax Credits and Its Impact on American Families

In a development that could significantly affect millions of Americans, the expiration of premium tax credits under the Affordable Care Act (ACA) is set to take place at the end of 2025. These credits have been crucial in making healthcare accessible for nearly 22 million people across the United States.

The expiration is a result of the recently passed legislation known as the "Big Beautiful Bill," which has been described as a tax relief measure primarily benefiting wealthy individuals and large corporations. Unfortunately, this bill did not extend the ACA premium tax credits, which have been renewed in prior years.

Without these credits, the Congressional Budget Office estimates that about 4.2 million working families may lose their health coverage or go uninsured. The potential increase in health insurance premiums could average 75%, with some families facing even higher hikes, potentially doubling their current costs.

The consequence of rising premiums is likely to lead many to forgo insurance altogether, resulting in an uptick in uncompensated care and heightened overall healthcare costs. This situation affects not only those reliant on the ACA but also others, who could see their premiums rise by hundreds of dollars.

Moreover, the potential expiration of these credits threatens the job market within the healthcare sector. Projections indicate that 130,000 jobs in healthcare, including those of AFSCME members, could be at risk.

The Big Beautiful Bill's impact extends further with its drastic reductions in Medicaid funding. Hospitals that depend on Medicaid, particularly those serving vulnerable populations, face significant budget cuts, potentially leading to closures. Such a scenario could deprive communities of essential services like trauma care, maternal health, and neonatal units, and place front-line workers in precarious employment situations.

This development unfolds amid a broader cost-of-living crisis affecting working families nationwide. The public is encouraged to reach out to their congressional representatives to advocate for measures that reduce healthcare costs. For those interested, you can take action here.