The premium tax credit (PTC) helps eligible individuals cover their premiums for health insurance purchased through the Health Insurance Marketplace. It was “enhanced” for the 2021 and 2022 tax years to allow taxpayers with incomes over 400% of the federal poverty line to claim a portion of the credit. The Inflation Reduction Act extended the credit through the end of 2025. The Centers for Medicare and Medicaid Services is warning that the PTC needs to be extended soon so issuers can set rates for 2026. Democratic lawmakers recently proposed the Health Care Affordability Act of 2024 to make the enhanced PTC permanent. Republican lawmakers have concerns over the costs. Stay tuned.
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