July 01, 2022

Duckworth Joins Shaheen and Colleagues in Letter to Senate Leadership Urging Extension of ACA Subsidies

 

[WASHINGTON, DC] – U.S. Senator Tammy Duckworth (D-IL) joined U.S. Senator Jeanne Shaheen (D-NH) and eleven of their Democratic colleagues in a letter to Senate Majority Leader Chuck Schumer (D-NY) and House Speaker Nancy Pelosi (CA-12), urging congressional leadership to prioritize making permanent the Affordable Care Act’s (ACA) enhanced premium tax credits in upcoming reconciliation legislation, which are set to expire at the end of this year.

“Americans deserve a stable health care market that provides access to high-quality care coverage for all, and American Rescue Plan Act’s (ARPA) enhanced premium tax credits must be extended to ensure that we can maintain our progress on closing the coverage gap,” wrote the Senators. “Failure to do so will leave millions with increased costs for vital health insurance, undoing Democrats’ progress in ensuring that every American has access to affordable, meaningful coverage.”

The lawmakers went on to underscore how critical 2022 has been for the ACA, with a record 14.5 million Americans signed up for Marketplace plans. Of those 14.5 million, 13 million Americans received subsidies that helped low- and middle-income individuals and families purchase previously unaffordable coverage. It also eliminated premiums for those making 150 percent of the federal poverty level and guaranteed comprehensive coverage costs no more than 8.5 percent of a family’s income. Millions of those Marketplace enrollees are benefiting from enhanced premium tax credits passed by Congress as part of the American Rescue Plan Act (ARPA), which have cut premiums in half for many beneficiaries. This year, four out of five enrollees have been able to find a plan for $10 or less per month and families are saving an average of $2,400 on their annual premiums. 

With these subsidies set to expire at the end of 2022, the Senators urged congressional leadership to make them permanent in upcoming reconciliation legislation.  

The Senators concluded: “Health care costs continue to rise, and we must ensure affordable, quality health coverage remains in reach. ARPA improved coverage affordability and if these subsidies are not extended premium payments will rise sharply for nearly all marketplace enrollees. We must not lose momentum in our work to close the coverage gap. As you continue your ongoing work to negotiate a reconciliation package, we urge to make permanent the vital ARPA enhanced premium tax credits.” 

In addition to Duckworth and Shaheen, the letter is also signed by U.S. Senators Kirsten Gillibrand (D-NY), Amy Klobuchar (D-MN), Richard Blumenthal (D-CT), Raphael Warnock (D-GA), Angus King (I-ME), Gary Peters (D-MI), Dianne Feinstein (D-CA), Jacky Rosen (D-NV), Jack Reed (D-RI), Patrick Leahy (D-VT) and Sheldon Whitehouse (D-RI).

The full text of the letter is available here and below.

Dear Majority Leader Schumer and Speaker Pelosi,

We write to you today urging you to prioritize making permanent the Affordable Care Act’s (ACA) enhanced premium tax credits set to expire at the end of this year in upcoming reconciliation legislation. Americans deserve a stable health care market that provides access to high-quality care coverage for all, and American Rescue Plan Act’s (ARPA) enhanced premium tax credits must be extended to ensure that we can maintain our progress on closing the coverage gap. Failure to do so will leave millions with increased costs for vital health insurance, undoing Democrats’ progress in ensuring that every American has access to affordable, meaningful coverage.

This has been a banner year for the ACA. In 2022, a record 14.5 million Americans signed up for Marketplace plans. 13 million of those received subsidies that help low- and middle-income individuals and families purchase previously unaffordable coverage, eliminating premiums for those making 150 percent of the federal poverty level and guaranteeing comprehensive coverage costs no more than 8.5 percent of a family’s income. Millions of those Marketplace enrollees are benefiting from enhanced premium tax credits passed by Congress as part of the ARPA, which have cut premiums in half for many beneficiaries1. This year, four out of five enrollees can find a plan for $10 or less per month,2 and families are saving an average of $2,400 on their annual premiums.3

Unfortunately, these subsidies are set to expire at the end of 2022, leaving families, states, health care providers and insurers in a precarious position. If Congress fails to extend ARPA’s enhanced subsidies, net premiums are expected to increase by more than 50 percent for 2023 and lead to even higher costs in 2024.4 According to a recent report from the Department of Health and Human Services, about 3 million individuals are projected to become uninsured if ARPA is allowed to expire.5 More than 10 million will have reduced tax credits or lose them entirely, with 1.5 million losing more than $3,200 annually in subsidies.6

In a number of states, 2023 premiums will be public starting in July, with official notices in all states sent to enrollees starting in the early fall. In early state-based insurance filings, premiums are estimated to increase anywhere from 25 to 70 percent for Americans that did not qualify for subsidies prior to ARPA. Consumers need stability year-over-year to make the best enrollment decisions for themselves and their families. Similarly, with Open Enrollment set to begin on November 1st, insurers have already begun plan pricing for 2023, leaving a quickly diminishing window to ensure a robust and stable Marketplace.

Health care costs continue to rise, and we must ensure affordable, quality health coverage remains in reach. ARPA improved coverage affordability and if these subsidies are not extended premium payments will rise sharply for nearly all marketplace enrollees. We must not lose momentum in our work to close the coverage gap. As you continue your ongoing work to negotiate a reconciliation package, we urge to make permanent the vital ARPA enhanced premium tax credits.

Thank you for your time and attention to this matter. We look forward to continuing to work with you to improve access to quality health care.

Sincerely,

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