OPINION:
Although the original Obamacare law was deeply flawed, and much of it has rightly been rolled back or reformed, one key provision has garnered support from voters across the political spectrum: tax credits that help Americans without employer-sponsored coverage afford health insurance. This critical lifeline has support from Republican and Democratic lawmakers, but the tax credits are set to expire at the end of this year.
As Congress prepares to enact adjustments to Medicaid eligibility through the reconciliation bill, extending these enhanced tax credits that help millions afford private health insurance is especially critical. If the reconciliation bill passes and these credits are allowed to sunset, many low-income and working-class Americans, especially seniors and those nearing retirement, could soon find themselves needing to move off Medicaid but unable to afford alternative health care coverage. Failing to act would create a dangerous coverage gap, leaving some of the most vulnerable Americans without access to the care they need.
These premium tax credits are subsidies to help low- and middle-income Americans afford health insurance plans purchased through the federal health insurance exchanges. The credits lower monthly premium costs based on income and family size, making health coverage more accessible for millions without employer-sponsored insurance, including seniors and near-retirees. If Congress fails to act this year, these credits will expire. The result: More than 4 million Americans could lose their coverage, and another 20 million could face steep increases in health insurance costs.
If even a small segment of the population experiences disruptions in Medicaid coverage, a strong individual insurance market, supported by these enhanced tax credits, would ensure that many Americans don’t fall through the cracks.
These credits and Medicaid work hand in hand, especially for low-income Americans and seniors navigating different life stages. For example, someone nearing retirement might rely on Medicaid temporarily and shift to subsidized private coverage when they find work again, particularly if their employer doesn’t offer health insurance. Many Medicaid recipients, especially in the expansion population, are working Americans. Tax credits allow these hourly and seasonal workers to afford private coverage should they need to shift off the Medicaid rolls.
The combination of potential Medicaid changes and the expiration of enhanced tax credits would be devastating. Millions of Americans could lose access to preventive care, diagnostic services and treatment for chronic and acute conditions. This is not just a bureaucratic issue; it’s a matter of life and health for many families.
Seniors and near-retirees would be hit especially hard. Roughly 4.8 million Americans ages 50 to 64, many of whom live in states that strongly support President Trump, could face unaffordable premiums if these tax credits vanish. In states such as Texas and Florida, 96% of health exchange enrollees in this age group rely on the tax credits. In rural areas, premiums would increase for 91% of midlife adults. These aren’t small increases. For a 60-year-old couple earning around $80,000 a year, annual health care premium costs could skyrocket by more than $17,000.
This isn’t and shouldn’t be a partisan issue. A recent poll found that 78% of swing voters support extending these enhanced premium tax credits for working families. We applaud the members of Congress from both parties who have already stepped up to support an extension, particularly for Americans nearing retirement.
Supporting these tax credits is a commonsense, pro-family, pro-worker solution. Members of Congress should continue to speak up and commit to extending these tax credits to ensure that working Americans, seniors and rural families aren’t left behind.
• Saulius “Saul” Anuzis is the president of the 60 Plus Association. He was chairman of the Michigan Republican Party from 2005 to 2009, a candidate for national chairman of the Republican National Committee in 2009 and 2011 and a member of the Republican National Committee from 2005 to 2012.
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