Action Needed to Preserve Enhanced Premium Tax Credits
By Jennifer Hanscom
The American Rescue Plan Act of 2021 and the Inflation Reduction Act of 2022 temporarily expanded federally funded premium tax credits for purchasing health insurance plans, making coverage more affordable for many previously uninsured patients.
In Washington state, these enhanced tax credits drove record enrollment in qualified commercial health plans and reduced the uninsured rate to historic lows. They improved affordability-especially for older residents, part-time workers, the self-employed, and small business owners.
The tax credits help many families and small businesses purchase coverage through the Washington Health Benefit Exchange, which operates Washington Healthplanfinder-an easy-to-use online marketplace where individuals and families can compare and enroll in qualified health plans, qualified dental plans, and Washington Apple Health (Medicaid).
Looking ahead, 14 health insurers have requested an average premium increase of 21.2% for Washington’s 2026 individual health insurance market. A key factor behind this request is the scheduled expiration of the tax credits on Dec. 31, 2025, unless Congress acts to renew them.
If Congress fails to reauthorize the tax credits, an estimated 216,000 Washingtonians will be affected. These potential losses would compound the harmful Medicaid cuts included in H.R. 1, the “One Big Beautiful Bill” that passed in July, which KFF estimates will reduce Medicaid spending in Washington by $4.75 billion when the bill takes effect. To see how your congressional district would be impacted, visit Washington Health Benefit Exchange’s Legislative Reports & Presentations page.
This week and next, WSMA’s executive committee and I are meeting with members of Congress, our two U.S. senators, and their staff to urge swift action to reauthorize these tax credits before the end of 2025.
If we want patients to receive quality care in the right place at the right time by physicians in their communities, then they must have affordable, comprehensive insurance coverage. Allowing tax credits to expire would be a step backward.
In 2010, Washington’s uninsured rate was around 15%. Today, it is approximately 4%. This progress is at risk. With Congress currently in its August recess, now is the time to raise this issue directly with your representatives. Please join us in urging immediate action to preserve affordable coverage for more than 200,000 Washingtonians. The AMA offers guidance on how to meet directly with your members of Congress and the exchange offers a fact sheet on the federal enhanced premium tax credits to assist your advocacy. You can also find contact information for your members of Congress by entering your address in the state Legislature’s district finder, and most members of Congress have a “request a meeting” tab on their webpages. Time is of the essence-thank you for taking action.
Jennifer Hanscom is WSMA’s CEO.