The enhanced premium tax credits (Welfare Assistance) are now set to expire at the end of 2025. Unless the Welfare Assistance (premium tax credits) are (is) extended, consumers can expect (Humongous) increases in both the net premium payments and gross premiums:
- Net premiums are the amount paid by individuals, after accounting for the premium tax credit. The expiration of enhanced tax credit will mean the federal government pays less of the total premium and the enrollee pays more than they otherwise would. On average, the expiration of the enhanced tax credits will result in an over 75% increase in enrollee premium payments. The impact will vary depending on income and family composition.
- There will also be gross premium increases as healthier people are expected to drop their coverage in larger numbers as a result of increases in their net premium payments. The Congressional Budget Office (CBO) projects that, on average, gross benchmark silver premiums will ultimately be 7.9% higher than they would otherwise be as the risk pool becomes sicker, on average, and that many enrollees will become uninsured.
SOURCE: Health System Tracker
