by Breanna Reeves
California leaders and health advocates are calling on Republicans to extend the Affordable Care Act’s (ACA) enhanced premium tax credits ahead of the expiration date on Oct. 1.
The premium tax credit is a refundable credit that helps eligible individuals and families cover the cost of premiums for their health insurance purchased through the Health Insurance Marketplace, also called Covered California for California residents.
According to a report published by the Robert Wood Foundation, if the tax credit ends, an estimated 7.3 million people will lose subsidized ACA health coverage, and 4.8 million people will become uninsured.
In California, nearly two million California residents will be impacted if the tax credit isn’t renewed.
“The enhanced premium tax credits have been a critical lifeline for millions of Americans to get access to affordable, quality health insurance,” stated Covered California Executive Director Jessica Altman in a press release. “That includes nearly two million Californians currently enrolled through Covered California, as we have seen a 23 percent jump in enrollment across all segments and ethnic groups.”
The analysis by the Robert Wood Foundation and the Urban Institute noted that hospitals, physicians, and other healthcare providers would face more than $32.1 billion in lost revenue in 2026, if the enhanced premium tax credits expire.
Democrats argue that extending these premium tax credits by the September 30 government funding deadline is important as open enrollment to purchase health insurance begins on Nov. 1.
Importantly, the decision to extend the tax credits lies at the center of a possible government shutdown if no agreement can be made on passing a stopgap bill, a temporary funding measure used by Congress to prevent a government shutdown. A funding bill needs 60 votes to advance to the Senate.
“Trump and Republicans in Congress would rather shut down the government than work with Democrats to make health care more affordable as millions of Americans struggle to pay the bills,” Senator Alex Padilla stated in a press statement.
“Republicans are refusing to extend lifesaving tax credits that millions of Americans rely on, jacking up premiums for 1.7 million Californians just trying to get by. If Republicans want to actually govern instead of shutting the government down, they need to earn Democrats’ votes by reversing their dangerous attacks on health care and supporting our plan to make these premium tax credits permanent,” Padilla continued.
With no consensus in sight between Republicans and Democrats, the clock is ticking as the government could be set to shutdown on Sept. 30. During a government shutdown “non-essential” government services such as non-emergency food inspections by the U.S. Food and Drug Administration and reduced personnel among the National Parks Service are among the government services interrupted.
Essential services will still be available, though workers will not be paid until after the shutdown is over. Operations such as the U.S. Postal Service, Social Security payments and Medicare and Medicaid program access will not be disrupted.
