By Thérèse Boudreaux | The Center Square
(The Center Square) – Wisconsin’s Democratic U.S. Sen. Tammy Baldwin has introduced a bill that would make permanent a pandemic-era temporary tax credit extension in the Affordable Care Act.
The Health Care Affordability Act, co-sponsored by Sen. Jeanne Shaheen, D-N.H., and supported by dozens of other Democrats in the Senate, would codify a temporary provision offering enhanced premium tax credits to middle class Americans. The enhanced PTCs are currently set to expire at the end of 2025, which would affect more than 20 million Americans and about 230,000 Wisconsinites.
“I fought hard to cut health care costs for Wisconsinites–saving thousands of families hundreds of dollars each year–and I refuse to let us go backward,” Baldwin said. “Our legislation will stop millions of hard-working Americans from having their healthcare costs jacked up, giving families peace of mind that they can get the quality health care they need at a price they can afford.”
When former president Barack Obama signed the ACA into law in 2010, it included enhanced PTCs for individuals and families earning between 100% and 400% of the federal poverty line purchasing health insurance on the federal Health Insurance Marketplace.
In 2021, the American Rescue Plan Act opened up PTCs to far more taxpayers via a temporary extension for individuals with incomes above 400% of the federal poverty line.
Originally set to expire in 2023, the Inflation Reduction Act extended the tax credits through 2025.
According to 2022 guidelines, the poverty level for a family of four is roughly $26,000 annually, meaning families of that size earning above $106,000 a year are still eligible for PTCs.
Baldwin, who is running against Republican challenger Eric Hovde, has been a vocal advocate and legislative supporter of the ACA since its beginning and voted in favor of expanding the PTC in both ARPA and the Inflation Reduction Act. Hovde, who has made healthcare reform one of his top four campaign issues, argues that the ACA has ultimately led to an increase in healthcare costs for Americans.
Permanently extending the ACA’s tax credits would increase the federal deficit by $335 billion over the next 10 years, according to the Congressional Budget Office.
Syndicated with permission from The Center Square.
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