Democrats believe health care is a right, and everyone should have affordable coverage. The enhanced tax credit means no one has to spend more than 8.5% of their income on coverage. Previously, anyone who made a dollar more than about $62,000 per year (or about $84,000 for a couple or $128,000 for a family of four) did not qualify for any tax credit at all to help them afford coverage.
Republicans complain that “high income people” are benefiting from enhanced premium tax credits because Republicans don’t want to make premium tax credits permanent for anyone. They’ve provided no evidence this problem even exists. It’s all part of their scheme to rip coverage away from more Americans and dismantle the Affordable Care Act.
In fact, Republicans strongly support using the tax code’s employer tax exclusion to subsidize coverage for people who get insurance through their job and expand the use of health savings accounts, which disproportionately benefit the wealthy. Through their Big, Ugly Bill, they handed out the largest tax breaks in history to the ultra wealthy, while taking insurance away from 10 million people. Their plan to end premium tax credits will rip coverage away from 5 million more, and nearly double premiums for over 20 million Americans. Hardworking families will lose life-saving coverage and go without care, and for millions more, it will make the already-rising cost of living even harder to shoulder.
Because health care is so expensive, even middle class families need help affording health insurance premiums. Midlife adults who are small business owners or self-employed, don’t receive insurance through their jobs, or retired early will be particularly hurt: nearly 5 million adults ages 50 to 64 will face average premium increases of more than $4,000 in 2026.
If enhanced tax credits expire, over 1.6 million people would lose tax credits entirely, meaning:
- The average 60-year old couple making about $127,000 (six times the federal poverty limit) would pay 20% of their income ($25,305 per year) for coverage.
- The average 60-year old couple making about $169,000 (eight times the federal poverty limit) would pay 15% of their income ($25,305 per year) for coverage.
- A 45-year old woman in North Carolina making $62,000 a year will see her premium increase by $1,604 annually.
- A 60-year old couple making $82,000 a year in Maine will see their premiums increase by $20,858 annually.
- A family of four making $126,000 in Alaska will see their premiums increase by $26,700 annually.
Instances of people with high incomes receiving premium tax credits are exceedingly rare. In order for someone with an income of $600,000 to qualify for a tax credit, their premiums for a silver-level benchmark plan would have to cost over $51,000 per year. And in those cases, they would pay $51,000 toward their premiums before qualifying for any tax credit to cover the cost above $51,000.