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Pandemic-Era Tax Credits Made Healthcare More Affordable, But They're Set to Expire

Medically reviewed by Carmen Pope, BPharm. Last updated on June 18, 2024.

By Ernie Mundell HealthDay Reporter

TUESDAY, June 18, 2024 -- In a success story for Americans seeking affordable healthcare coverage, tax credits put in place during the pandemic helped millions gain health insurance, a new report found.

Trouble is, the credits are set to expire at the end of 2025, noted a research team from the nonprofit Robert Wood Johnson Foundation (RWJ).

According to RWJ's new analysis, so-called enhanced Premium Tax Credits will reduce the number of uninsured Americans by 4 million next year, and boost enrollment in the Affordable Care Act (ACA) health insurance marketplace by 7.2 million.

The credits were put into place by Congress during the pandemic to help folks hang on to health insurance.

The strategy worked, with the new modeling analysis finding:

“The enhanced premium tax credits have led to record-high enrollment in the Marketplaces at all income levels, and enrollment will likely rise as the Medicaid unwinding finishes,” said Jessica Banthin, senior fellow at the Urban Institute. “If Congress does not extend enhanced premium tax credits after 2025, we project that these gains will be reversed, and more than 4 million people could become uninsured.”

“Thanks to the enhanced premium tax credits, millions of additional people across America have gotten covered,” Katherine Hempstead, RWJ's senior policy adviser, said in a foundation news release. “These tax credits have increased affordability for individuals and families who might have otherwise been forced to choose between healthcare and other necessities. Expanding coverage advances equity, increases financial stability and empowers millions to access needed care.”

Sources

  • Robert Wood Johnson Foundation, news release, June 17, 2024

Disclaimer: Statistical data in medical articles provide general trends and do not pertain to individuals. Individual factors can vary greatly. Always seek personalized medical advice for individual healthcare decisions.

© 2025 HealthDay. All rights reserved.

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