If Premium Tax Credits Expire, Millions Will Lose Health Insurance

Those lucky enough to continue to afford health insurance likely will see "significant" premium hikes.

More than 3 million people will join the ranks of the uninsured across the nation in 2023 if Congress allows premium tax credits in the American Rescue Plan to expire, according to the Urban Institute.

Jessica Banthin, a senior fellow at the Urban Institute, said the study shows "that 4.9 million fewer people will be enrolled in subsidized Marketplace coverage in 2023 if the enhanced PTCs aren't extended."

"This comes at a pivotal time when millions of people will be losing Medicaid as the public health emergency expires," Banthin said.

The tax credits have been available for some consumers based on financial need when they buy health insurance through marketplaces created through the Affordable Care Act. The Urban Institute notes that ending the credit would disproportionately disenroll non-Hispanic Blacks, young adults, and low-income people.

Congress would need to act by midsummer to extend PTCs to give Marketplaces, insurers, and outreach programs time to prepare for the 2023 open enrollment, which starts in November.

Those who can afford to keep their insurance can expect to pay hundreds if not thousands of dollars more in per-person premiums.

"The combined effect of ending both the premium tax credits and the public health emergency could lead to a tsunami of coverage loss," said Kathy Hempstead, senior policy adviser at the Robert Wood Johnson Foundation, which commissioned the report.

"A reversal of progress in boosting the coverage rate to record levels seems inevitable if Congress does not act," Hempstead said.

To view the full report, click here.