With Millions Set To Lose Health Insurance Or Pay Thousands More For Coverage, Gillibrand Announces Legislation To Extend Affordable Care Act Subsidies

With Millions Set To Lose Health Insurance Or Pay Thousands More For Coverage, Gillibrand Announces Legislation To Extend Affordable Care Act Subsidies

Oct 6, 2024

With critical subsidies that help over 20 million Americans afford health insurance set to expire, U.S. Senator Gillibrand held a press conference in NYC to announce the Health Care Affordability Act, legislation to extend these subsidies and ensure New Yorkers don't lose access to affordable health care. Without an extension, these 20 million Americans will see a sudden increase in their health insurance costs and an estimated 3 million Americans could lose their insurance. Gillibrand's legislation would permanently extend the enhanced Premium Tax Credits offered in individual marketplaces under the Affordable Care Act and keep health care costs lowered for all Americans.

"Access to affordable, high-quality health care should be a basic human right," said Senator Gillibrand. "No one should have to forgo treatment because they can't afford the cost of health insurance. Allowing these tax credits to expire would needlessly jeopardize our public health and shoulder hard-working New York families with a financial burden many can't afford. I am determined to get this bill passed and keep health care costs lowered for all Americans."

Premium tax credits (PTC) were established as part of the Affordable Care Act, which became law in 2010. PCTs are refundable credits that help eligible individuals and families - those with incomes between 100 percent and 400 percent of the Federal Poverty Line - cover the premiums for their health insurance purchased through the Health Insurance Marketplace.

In 2021, the American Rescue Plan Act (ARPA) temporarily expanded eligibility for the PTC to additional individuals and households. It also lowered premiums for those who were already eligible. This enhanced PTC reduced net premium costs by an average of 44%.

In 2022, the Inflation Reduction Act extended these enhanced Premium Tax Credits for three years. In that time, ACA enrollment has nearly doubled, helping more low-income households receive coverage and care.

If Congress does not act to again extend the enhanced Premium Tax Credit, they will expire at the end of 2025 and millions of Americans in New York and across the country are in danger of no longer being able to afford their premiums.

Gillibrand was joined by Sonia Sekhar, Deputy Director at New York State of Health; Mark Hannay, Executive Director of Metro New York Health Care for All; Veronica Smith, Senior Director of Health Policy and Government Affairs at Public Health Solutions; and Elisabeth Benjamin, Vice President of Health Initiative at Community Service Society.