News

Premium Tax Credits Are Already Means Tested

Next year, millions of Americans will see dramatic increases in their health care costs if Congress fails to extend the enhanced premium tax credits in the American Rescue Plan — and as many as three million people will no longer be able to afford insurance at all. Failure to extend these tax credits would be a devastating blow to middle class families across the country. 

The American Rescue Plan ensured everyone had the option to purchase health care for less than 8.5 percent of their income. Previously, middle class families spent an average of 15 percent of their incomes on health insurance. The subsidies are designed to benefit those who need it most, and they are already means tested, which means the higher your income, the smaller your tax credits become. A family whose health insurance premiums alone — not including deductibles — are less than 8.5 percent of their income receive no tax credits at all. 

If Congress fails to act soon, some families will face increases of more than $30,000 a year. This is unacceptable and entirely preventable, particularly when families are already squeezed by inflation and rising prices. Losing access to premium tax credits would be a catastrophe for the middle class, with adults between the ages of 55 and 64 and Americans with large families facing the largest premium increases. Families are relying on lawmakers to keep their health care coverage affordable. Congress must extend the American Rescue Plan’s enhanced premium tax credits before it’s too late.

How The Premium Tax Credits Benefit Middle Class Families

13 Million Americans Depend On Premium Subsidies. A record breaking 14.5 million Americans enrolled in an ACA marketplace plan in 2021. Right now, nearly 13 million people, or 89 percent with an ACA plan, are receiving enhanced tax credits, making their coverage affordable and accessible.  

Making Coverage More Affordable For Americans. Middle class families used to spend an average of 15 percent of their incomes on health insurance. Now they have the option to purchase health care for less than 8.5 percent of their income. Americans between 55 and 64 receive nearly 45 percent of premium tax credits. Losing access to affordable coverage would be a devastating blow to this group as they prepare for retirement.

Without An Extension Of The American Rescue Plan’s Tax Credits:

• The average middle class family of four in the U.S. will see an annual premium hike of $6,604.
• The average middle class couple about to retire will see an annual premium hike of $15,949.

U.S. Representatives Lauren Underwood and Susan Wild, The Leadership Conference on Civil and Human Rights, and Protect Our Care Called on Congress to Stop Premium Hikes and Close the Coverage Gap 

Watch the Event Here.

Washington, DC — Today, U.S. Representatives Lauren Underwood (D-IL-14) and Susan Wild (D-PA-07) joined The Leadership Conference on Civil and Human Rights for a virtual press conference hosted by Protect Our Care to discuss the urgent need for Congress to protect and expand women’s access to health care in the wake of the Supreme Court’s elimination of the federal right to an abortion. During the call, speakers made the case for extending the American Rescue Plan’s enhanced premium tax credits and closing the Medicaid coverage gap to improve maternal health outcomes, protect contraception access, and make health coverage affordable for families. 

The event follows a new report from Protect Our Care that lays out the dire consequences for women and children if Congress fails to extend the American Rescue Plan’s premium tax credits and close the Medicaid coverage gap.

“Fundamentally, health care is a human right, and we need to urgently respond to the Supreme Court’s dismantling of nearly 50 years of precedent by extending advanced premium tax credits and making life-saving, high-quality care affordable and accessible for all,” said U.S. Representative Lauren Underwood. “If Congress does not act now, women will lose access to essential, reproductive care, all while facing extreme state abortion bans that aren’t based on science. The Senate must protect access to reproductive health care by passing legislation that makes the American Rescue Plan premium tax credit expansion permanent.”

“Every American should have access to affordable, comprehensive health care, and in the face of the overturning of Roe the fight has never been more urgent,” said U.S. Representative Susan Wild. “If we don’t take action, thousands of women in Pennsylvania and millions of women across the country will lose guaranteed access to contraceptives, wellness visits, and maternal health care, while their monthly premiums increase hundreds of dollars. At a time when reproductive health is under the greatest threat since Roe was decided we cannot allow parents to also face higher costs for healthcare or loss of coverage all together.”

“Many of the states that have banned or restricted abortion access have also denied comprehensive health coverage to low income people of reproductive age by failing to extend Medicaid under the ACA,” said Peggy Ramin, Counsel on Health/Poverty at The Leadership Conference on Civil and Human Rights. “With the upcoming reconciliation legislation, Congress has a real opportunity to address long standing disparities and access to care by providing comprehensive coverage to 2.2 million adults, including 800,000 women of reproductive age, that fall within the Medicaid coverage gap. Closing the coverage gap will help to ensure all people of reproductive age can get the health care they need before, during, and after pregnancy.” 

“The Supreme Court’s decision to overturn Roe v. Wade has made it even more urgent for Congress to expand access to affordable health care for the American people,” said Protect Our Care Chair Leslie Dach. “Closing the coverage gap and extending the American Rescue Plan’s premium tax credits are common sense policies to ensure women and their families can access free contraception, maternal services, and other essential care. Congress must act quickly to mitigate some of the damage as states move to restrict abortion access.” 

Washington, DC — Protect Our Care is releasing a new report that highlights the urgent need for Congress to protect and expand women’s access to health care in the wake of the Supreme Court’s elimination of the constitutional right to an abortion. The report lays out the dire consequences for women of childbearing age and their families if Congress fails to make the American Rescue Plan’s enhanced premium tax credits permanent and close the Medicaid coverage gap. 

While abortion rights have long been at the center of the Republican war on health care, the GOP has also opposed meaningful measures to expand health care access by refusing to close the Medicaid coverage gap and opposing measures to drive down health care costs. With the American Rescue Plan’s enhanced premium tax credits set to expire later this year, it has never been more urgent for Congress to prevent premium hikes and extend affordable coverage to mitigate some of the worst impacts of the Supreme Court decision.

“The Supreme Court’s decision to overturn Roe v. Wade has made it even more urgent for Congress to expand Medicaid and extend the American Rescue Plan’s premium tax credits, ensuring women and their children have access to essential health care,” said Protect Our Care Chair Leslie Dach. “The officials attacking women’s rights are the same people who oppose Medicaid expansion, refuse to support measures to improve health outcomes for mothers and their children, and fight common sense reforms to lower health care costs.”

KEY POINTS

• Closing the Coverage Gap Essential to Protect Mothers and Families. Many of the states moving to take away the right to an abortion are the same states whose Republican governors or state legislatures have refused to expand Medicaid. Failure to expand Medicaid has left women and children without the health care they need. There are 2.2 million uninsured people below the poverty line who live in Medicaid coverage gap states, and more than 800,000 are women of reproductive age. 
• If Congress Fails To Act, Millions Of Women & Children Will Lose Coverage. More than 3 million people will become uninsured if the American Rescue Plan’s enhanced premium tax credits expire — increasing the number of uninsured Americans by 11 percent. When women become uninsured, they lose the guaranteed protections of the ACA, including access to free contraceptives, cancer screenings (including breast and cervical cancer), and well woman visits. When women lose their health insurance, their children also become uninsured, including young adults who are able to remain on a parent’s insurance until 26. 

Read the full report here. 

 ***MEDIA ADVISORY FOR THURSDAY JULY 14 AT 10:45 AM ET // 9:45 AM CT***

Washington, DC — On Thursday, July 14, 2022 at 10:45 AM ET // 9:45 AM CT, U.S. Representatives Lauren Underwood (D-IL-14), Susan Wild (D-PA-07) and the Leadership Conference on Civil and Human Rights will join Protect Our Care for a virtual press conference to discuss the urgent need for Congress to protect and expand women’s access to health care in the wake of the Supreme Court’s elimination of the federal right to an abortion. Protect Our Care is releasing a new report that lays out the dire consequences for women and children if Congress fails to make the American Rescue Plan’s enhanced premium tax credits permanent and close the Medicaid coverage gap. 

Three million people stand to lose their health coverage if Congress fails to extend the American Rescue Plan’s tax credits — which means the loss of access to free contraceptives, lifesaving maternal care, and care for children. At the same time, in states like Georgia, North Carolina, and Texas, Republican lawmakers are not only rolling back abortion rights, but they are continuing to block Medicaid expansion, which only leaves mothers and families without access to essential care. This press call makes clear that Congress must move quickly to extend premium subsidies and close the coverage gap to avoid exacerbating the damage being done as states revoke abortion rights. 

PRESS CALL:

WHO: 

U.S. Representative Lauren Underwood (D-IL-14)
U.S. Representative Susan Wild (D-PA-07)
Peggy Ramin, Counsel on Health/Poverty at the Leadership Conference on Civil and Human Rights
Leslie Dach, Protect Our Care

WHAT: Virtual Press Conference to Discuss How Overturning Roe Exacerbates Need to Lower Costs and Expand Health Care Coverage 

WHERE: Register for the Event Here

WHEN: Thursday, July 14, 2022 at 10:45 AM ET // 9:45 AM CT

Next year, millions of Americans will see dramatic increases in their health care costs if Congress fails to extend the enhanced premium tax credits in the American Rescue Plan — and millions will no longer be able to afford insurance at all. We’ve seen the consequences of rising premiums in an election year before. In 2016, damaging stories about premium hikes flooded the news just before voters went to the polls. These stories only benefited Republicans, who pointed to cost increases as evidence that the Affordable Care Act should be repealed entirely. 

Now, history is repeating itself. As election season approaches, news of impending premium increases are only becoming more prevalent. Open enrollment for 2023 plans begins on November 1, 2022, a week before Election Day — and rate increases are being finalized now.  Experts say insurers are likely to seek double digit increases in state after state, which means that families could pay hundreds, or even thousands of dollars more per month.  

If Congress does not act soon, news of premiums skyrocketing will be front and center as Americans prepare to go to the polls this fall. Congress must move swiftly to prevent skyrocketing premium increases and protect health coverage for millions. 

Below is a sampling of national and local headlines from the fall of 2016 showing the impact of premium spikes on the political environment:

REPUBLICANS MADE POLITICAL HAY FROM PREMIUM SPIKES IN 2016

• BenefitsPRO: Trump Finds Opportunity In ACA Premium Increases. [BenefitsPRO, 10/26/16] 
• CNN: Republicans Go On Offense Over Obamacare. [CNN, 10/25/16] 
• Fox News: Republicans Blast Obamacare After Premium Hike Announcement. [Fox News, 10/25/16] 
• Washington Post: Obamacare Premium Hikes Could Be Good News For Republicans. But Just How Good? [Washington Post, 10/25/16] 
• Washington Times: Republicans Hope Obamacare Complications Will Flip Key States. [Washington Times, 10/30/16] 

NATIONAL HEADLINES

• BenefitsPRO: ACA Premiums Could Increase For As Many As 8.4 Million. [BenefitsPRO, 11/7/16] 
• CNN: Obamacare Premiums to Soar 22% [CNN, 10/25/16] 
• New York Times: Some Health Plan Costs to Increase By An Average Of 25 Percent, U.S. Says. [New York Times, 10/24/16]
• PBS: Obama Administration Announces Double-Digit Premium Hikes For Affordable Care Act [PBS, 10/24/16] 
• Reuters: Obamacare Premiums for 2017 Jumped 25% on Healthcare.gov [Reuters, 10/25/16] 
• Washington Post: Average Premiums For Popular ACA Plans Rising 25 Percent. [Washington Post, 10/24/16] 
• Washington Post: Where Obamacare Prices Are Rising Dramatically [Washington Post, 11/1/16] 

STATE HEADLINES

ARIZONA

• CBS: Arizona Obamacare Plan To Jump By 116 Percent When Premiums Go Up Next Year. [CBS, 10/26/16] 
• New York Times: Increase in Health Act Premiums May Affect Arizona Vote. [New York Times, 10/13/16] 

CALIFORNIA

• Los Angeles Times: Some Californians See Health Premiums Rise Sharply As Obamacare Enrollment Nears. [Los Angeles Times, 10/28/16] 

COLORADO 

• Denver Post: Colorado Health-Insurance Rates To Jump 20 Percent On Average For Individual Buyers In 2017. [Denver Post, 9/20/16] 

FLORIDA

• Associated Press: Florida Insurers Seek Rate Increases For Obamacare Plans [Associated Press, 5/26/16] 

IOWA

• Des Moines Register: Wellmark Plans 38% To 43% Increases For Some Customers [Des Moines Register, 5/12/16] 

MINNESOTA

• St. Paul Pioneer Press: ‘Emergency’ For Minnesota As Huge Insurance Premium Hikes Confirmed. [St. Paul Pioneer Press, 9/30/16] 
• St. Paul Pioneer Press: Minnesota’s Health Insurance Premium Hike Is Fourth-Highest In Nation [St. Paul Pioneer Press, 10/24/16] 

NORTH CAROLINA

• Charlotte Observer: NC Blue Cross Announces Rate Increase Of 24.3 Percent For Aca Marketplace Plans. [Charlotte Observer, 10/17/16] 

WEST VIRGINIA

• Wheeling News Register: West Virginia to Feel the Pain Of Health Insurance Hikes [Wheeling News Register, 10/26/16] 

Washington DC —Yesterday, the Associated Press reported that Senate Democrats are including measures to extend Medicare’s solvency in the budget reconciliation package, securing health care for seniors nationwide. In response, Protect Our Care Chair Leslie Dach issued the following statement: 

“By extending Medicare’s solvency, Senate Democrats are averting a health care crisis and protecting health care for millions of seniors. Democrats understand that American seniors have worked hard for these benefits and depend on them to get the health care they need. Republicans, on the other hand, have a plan that would sunset the program, along with Social Security, after five years. 

“Passing the budget package means that Medicare will be protected for years to come, and it is just one more reason that Congress should work quickly to get reconciliation legislation to President Biden’s desk.”  

Democrats’ Legislation Gives Medicare the Power to Negotiate Drug Prices

Washington, D.C. — Last night, Senate Democrats released bill text to reduce prescription drug costs for millions of Americans. This legislation gives Medicare the power to negotiate lower drug prices, caps seniors’ out-of-pocket drug costs, and penalizes drug companies that raise prices faster than inflation. In response, Protect Our Care Chair Leslie Dach issued the following statement:

“President Biden and Democratic leaders are fighting tirelessly to bring relief to lower families’ everyday health care costs. Americans are sick and tired of choosing between paying the bills and affording the medications they need to survive. Between giving Medicare the power to negotiate, capping drug costs for seniors, and limiting egregious price hikes, this bill will lower costs for millions of Americans. Meanwhile, Republicans are continuing to prioritize drug industry profits and stall any progress by insisting on procedural delays on any vote seeking to lower drug prices. We urge Congress to follow through and get this bill on President Biden’s desk.” 

***MEDIA ADVISORY FOR THURSDAY, JULY 7 AT 1:00 PM ET***

Pennsylvania — On Thursday July 7th at 1 PM, U.S. Representatives Brendan Boyle and Susan Wild will join For Our Future PA, Protect Our Care Pennsylvania, Pennsylvania Health Access Network and Family Friendly Pennsylvania to discuss the need for Congressional action to make health care more affordable as household costs rise. 

A new report shows the premium tax credits included in the American Rescue Plan have made health coverage more affordable for Pennsylvanians. These premium tax credits dramatically lowered the cost of health care coverage for 375,000 Pennsylvanians. Last week, 14 Democratic governors from across the country, including Pennsylvania Governor Tom Wolf, sent a letter to congressional leadership, urging them to extend the enhanced premium tax credits that are set to expire at the end of this year.

Members of the Senate are reportedly close to a deal that would include parts of the House-passed proposal to lower prescription drug costs. The deal is slated to allow Medicare to negotiate the price of select drugs on behalf of seniors, cap seniors’ out of pocket drug costs, and penalize companies that raise prescriptions faster than inflation. Together, these two measures would significantly reduce health care costs at a time when Pennsylvania families are already facing higher costs.

VIRTUAL EVENT:

WHO:
Representative Brendan Boyle
Representative Susan Wild
Antoinette Kraus, Executive Director, Pennsylvania Health Access Network (PHAN)
For Our Future PA
Protect Our Care PA
Family Friendly Pennsylvania

WHAT: Virtual Press Conference

WHEN: Thursday July 7th at 1PM

WHERE: Register to join the Zoom event (Registration required)

***MEDIA ADVISORY FOR THURSDAY, JULY 7 AT 10:00 AM ET***

Cleveland, OH — Today, Thursday, July 7, 2022 at 10:00 AM ET, U.S. Representative Shontel Brown (D-OH-11) and Northeast Ohio health care leaders will join Protect Our Care Ohio to discuss the importance of making premium tax credits that were included in the American Rescue Plan permanent. They will discuss a new report that shows the premium tax credits included in the ARP have made health coverage more affordable for Ohioans. The report also lays out the dire consequences if Congress fails to extend the credits, which will expire at the end of 2022 without congressional action.

Rep. Brown was among 57 members of Congress who recently sent a letter to party leadership underscoring the importance of legislation to extend the advanced premium tax credits.

VIRTUAL EVENT:

WHO:
Congresswoman Shontel Brown (D-OH-11)
Yvonka Hall, Executive Director, Northeast Ohio Black Health Coalition
Molly Nagin, Certified Navigator, Affordable Care Act, UHCAN Ohio

WHAT: Virtual Press Conference

WHERE: Register for the Event Here

WHEN: Thursday, July 7 at 10:00 AM ET