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If you buy health insurance via the federal marketplace, your premiums could increase significantly after 2025 — unless Congress takes action.
The premium tax credit makes health insurance purchased via the marketplace more affordable. Participants can use the credit to lower insurance premiums upfront or claim the tax break when filing their return.
The credit was temporarily enhanced via the American Rescue Plan Act during the Covid-19 pandemic. The legislation covered plans in 2021 and 2022, but the Inflation Reduction Act extended that benefit through 2025.
If the benefits sunset after 2025, “virtually everybody would face higher premiums,” according to Gideon Lukens, senior fellow and director of research and data analysis for the Center on Budget and Policy Priorities, who wrote about the expirations this month.
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