For years, the couple chose the high-deductible plans in order to secure a more affordable monthly premium. In recent years it’s cost the two about $300 a month. Without the tax credits, that monthly cost would more than double to around $800.
The expanded tax credits had saved the family enough that LaCasse-Ford and her husband were able to create a comfortable savings account. If health care costs go up for her husband, those higher monthly premium payments will quickly eat through the family’s savings, she said.
“All of the unknowns are very stressful,” she said.
How did we get here?
The Affordable Care Act became law in 2010 under President Obama.
The framework for premium tax credits for Affordable Care Act health plans began in 2014. Since then, the federal government capped how much plan holders pay for their insurance premiums, limiting the cost at a certain percentage of their annual income. The government would pay for the rest by providing a tax credit to make up the difference.
In 2021, amid the COVID-19 pandemic, Congress and President Joe Biden expanded the premium tax credits to entice more Americans to be insured. The plan worked: The number of people with health insurance ballooned from around 11 million to over 24 million people.
Without the enhanced tax credits, some plan holders will see their insurance costs double or triple.