Shaheen, Baldwin Introduce Legislation to Make Affordable Care Act Premium Tax Credits Permanent, Lowering Costs for Millions of Americans

(Washington, DC) – U.S. Senators Jeanne Shaheen (D-NH) and Tammy Baldwin (D-WI) are introducing the Health Care Affordability Act—legislation making permanent the Affordable Care Act’s (ACA) enhanced premium tax credits (PTCs) for Health Insurance Marketplace coverage as extended through the Inflation Reduction Act. The enhanced PTCs, which have made health care more affordable and accessible for millions of Americans, are currently set to expire at the end of 2025. If these credits expire, over 20 million Americans will see a sudden increase in their health insurance costs, an estimated three million Americans could lose their health insurance entirely and nearly nine million people will pay more—roughly $406 per person—for coverage. U.S. Congresswoman Lauren Underwood (D-IL) is introducing identical legislation in the U.S. House of Representatives. The Senator spoke in support of her bill during a press conference in the Capitol today. 

“For years, the ACA enhanced premium tax credits have significantly lowered costs and increased access to health insurance for families in New Hampshire and across the country. But let's be very clear: if Congress fails to act before these tax credits expire, tens of millions of Americans will suffer a substantial increase in health care costs and millions of individuals could lose their health insurance entirely,” said Senator Shaheen. “It's time to extend these highly effective tax credits to keep costs from skyrocketing and ensure health care is within reach for every American, and I’m proud that our Health Care Affordability Act does just that.” 

“I’m focused on the kitchen table issues that keep families up at night and the skyrocketing cost of health care and prescription drugs is high on that list. I fought hard to cut health care costs for Wisconsinites – saving thousands of families hundreds of dollars each year – and I refuse to let us go backward,” said Senator Baldwin. “Our legislation will stop millions of hard-working Americans from having their healthcare costs jacked up, giving families peace of mind that they can get the quality health care they need at a price they can afford.” 

The?Health Care Affordability Act?would make permanent the Affordable Care Act’s (ACA’s) enhanced premium tax credits for Health Insurance Marketplace coverage as extended through the Inflation Reduction Act. Those enhanced tax credits increased the value of the tax credits available to people with income between 100 and 400 percent of the federal poverty level (FPL) while expanding eligibility for premium tax credits to include individuals with income above 400 percent of FPL. 

Cosponsors of Shaheen and Baldwin’s bill include U.S. Senate Majority Leader Chuck Schumer (D-NY), Senate Finance Committee Chairman Ron Wyden (D-OR), and U.S. Senators Jack Reed (D-RI), Jeff Merkley (D-OR), Sherrod Brown (D-OH), Richard Blumenthal (D-CT), John Fetterman (D-PA), Jacky Rosen (D-NV), Tim Kaine (D-VA), Amy Klobuchar (D-MN), Kirsten Gillibrand (D-NY), Tina Smith (D-MN), Sheldon Whitehouse (D-RI), John Hickenlooper (D-CO), Mazie Hirono (D-HI), Ben Ray Luján (D-NM), Peter Welch (D-VT), Michael Bennet (D-CO), Laphonza Butler (D-CA), John Tester (D-MT), Chris Van Hollen (D-MD), Mark Warner (D-VA), Elizabeth Warren (D-MA), Chris Coons (D-DE), Gary Peters (D-MI), Richard Durbin (D-IL), Tammy Duckworth (D-IL), Brian Schatz (D-HI), Tom Carper (D-DE), Bob Casey (D-PA), Cory Booker (D-NJ), Angus King (I-ME), Maggie Hassan (D-NH), Catherine Cortez Masto (D-NV), Ed Markey (D-MA), Mark Kelly (D-AZ), George Helmy (D-NJ), Ben Cardin (D-MD), Debbie Stabenow (D-MI), Patty Murray (D-WA), Raphael Warnock (D-GA), Chris Murphy (D-CT) and Martin Heinrich (D-NM). 

The bill has been endorsed by: Keep Americans Covered, Protect Our Care, Leukemia & Lymphoma Society, Center for American Progress, UnidosUS, United States of Care, National Partnership for Women and Families, Young Invincibles, Families USA, American Heart Association, National Bleeding Disorders Foundation, National Health Council, Epilepsy Foundation, Hemophilia Federation of America, American Kidney Fund, The AIDS Institute, American Lung Association, American Cancer Society Cancer Action Network, Susan G. Komen, Cystic Fibrosis Foundation, Third Way, Community Catalyst, Alliance of Community Health Plans, National Organization for Rare Disorders, Asthma and Allergy Foundation of America, WomenHeart, CancerCare, Crohn’s & Colitis Foundation, National Alliance on Mental Illness (NAMI), Federation of American Hospitals, National Association for the Advancement of Colored People (NAACP). 

Last week, Shaheen and Underwood penned letters to Congressional leaders and called on them to act before the enhanced PTCs expire at the end of 2025 to protect the millions of Americans who rely on these tax credits for affordable health care. 

Shaheen has spearheaded efforts to lower premiums to make health insurance more affordable for patients through her signature legislation, the Improving Health Insurance Affordability Act. Shaheen successfully secured premium tax credit enhancement provisions in the American Rescue Plan. This expansion of premium tax credits marked the biggest improvement to the ACA since it became law over a decade ago. When the tax credits were set to expire at the end of last year, Shaheen successfully extended their authorization through the Inflation Reduction Act. 

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