ICYMI: Affordable Care Act Tax Credits Are In Peril
The alarm bells are ringing for thousands of Michiganders who could be at risk of no longer affording health insurance
Michigan – The Affordable Care Act tax credits that help 20 million Americans pay for their health insurance are at risk of expiring next year. In 2021, after the passage of the American Rescue Plan Act, tax credits to make the Affordable Care Act (ACA) marketplace insurance premiums more affordable were enhanced, meaning more Americans could sign up for health insurance and afford to pay the monthly cost of coverage. In 2022, the Inflation Reduction Act continued the policy and extended the enhanced credits for three years.
The 2017 GOP Tax Law which lowered the corporate tax rate to its lowest point in decades and gave tax benefits to the wealthiest members of society also has provisions set to expire next year. As we have conversations about how to continue funding affordable health care, we can put the trillions of dollars the ultra-wealthy received in tax cuts to better use.
Jocelyn Howard, Warren Resident and Turnaround School Specialist
“As a Michigander who gets their insurance through the ACA marketplace exchange, these tax credits have saved me, and people just like me, thousands of dollars a year. It has made financial stability easier to maintain. We have to prioritize the health and well-being of our community by ensuring these subsidies continue. No one should have to worry about whether or not they can keep their health insurance.”
These tax credits cut the cost of health insurance premiums by up to 44% and since 2020 the ACA marketplace has grown from 11.4 million to 21.4 million people. In Michigan alone, nearly 375,000 people are enrolled to receive credits towards their premiums. Should these credits expire, Michiganders could see an increased cost of 70%.
In Michigan’s 10th Congressional District this could affect nearly 40,000 people, which means our elected official, Congressman John James, needs to do everything in his power for these credits to continue. Representative James has a history of siding with powerful interests at the expense of those he was elected to represent, including calling to repeal the ACA.
Steve Lawson, Executive Director of Michigan Families for Fair Care
“Lawmakers have the ability to act and protect a policy that has given health insurance access to hundreds of thousands of hardworking Michiganders. Next year, ACA tax credits are going to expire, and there will be a conversation about how to afford continuing the program. It just so happens that next year, the GOP Tax Law also expires. The tax law cost our country trillions of dollars, let's put that money to good use and invest in our citizens. Millions are at risk of losing their health insurance, and we urge Congressman John James to push to protect these subsidies that so many of his constituents rely on.”
