The expiration of the Affordable Care Act (ACA) enhanced tax credits at the end of 2025 is expected to increase healthcare costs for millions of Americans.
These credits, introduced in 2021 to make coverage more affordable, have lowered out-of-pocket premiums for many enrollees in the ACA marketplace.
If Congress does not renew the credits, approximately 7.3 million people could lose subsidized coverage, and about 4.8 million may become uninsured.
The lapse would lead to an estimated 75% average increase in premiums for many individuals who currently receive financial assistance. Those with higher subsidies are likely to experience the most significant cost increases.
The enhanced tax credits have contributed to higher enrollment in ACA plans, making them accessible to more people. Their expiration could result in declining enrollment and a potential contraction of the healthcare marketplace.
The lack of bipartisan agreement has delayed action, leaving uncertainty over how millions of Americans will afford healthcare coverage once the credits expire.
As the 2025 deadline approaches, the fate of the ACA tax credits remains a key issue in national policy discussions. The decision on whether to renew or allow them to expire will shape the affordability and accessibility of healthcare for years to come.