In approximately three weeks, the tax credits Americans use to lower the cost of health insurance under the Affordable Care Act (ACA) will expire. These subsidies, extended at the height of the COVID-19 pandemic, are set to expire on Dec. 31. This means millions of Americans will face high health insurance costs if Congress fails to act.

Republican lawmakers are reluctant to extend government subsidies, which was the central issue for Democrats during the recent government shutdown. During the 43-day shutdown, the longest in history, GOP lawmakers promised to work with Democrats on a plan to keep health insurance lower for Americans. So far, Republicans have not released a cohesive proposal.

However, as NPR points out, some are pushing to give Americans cash through a health savings account paired with a high-deductible health plan. A plan like this would mean that Americans who choose an ACA plan through the marketplace will have cheaper monthly payments but higher individual deductibles.

Americans On Both Sides Support Tax Credits

In 2021, Congress passed the American Rescue Plan Act (ARPA), which temporarily increased tax credits for adults who purchased their own health insurance through the ACA Marketplace. Ultimately, these credits increased financial assistance to qualifying enrollees. The tax credits were extended as part of the 2022 Inflation Reduction Act, which expires at the end of 2025.

Without the tax credits, premium payments will increase by an average of 114% for the 22 million people who currently receive them. Many Marketplace enrollees report struggling with healthcare costs. A new poll released by KFF found that 61% of those who buy health insurance through the Marketplaces find it very or somewhat difficult to do so.

Enrollees want a solution. The same KFF study found that 84% of Marketplace enrollees, including nearly all Democrats and about 7 in 10 Republicans, say Congress should extend the tax credits. If the tax credit expires, KFF’s poll finds that most enrollees think either President Trump (41%) or Congressional Republicans (35%) is most to blame.

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