Time is quickly running out for Congress to extend the Affordable Care Act’s enhanced Premium Tax Credits (PTCs). Lawmakers in both parties have expressed doubts that a deal can be reached before the enhanced PTCs expire on Dec. 31, 2025. Typically, the federal government pays advanced PTCs directly to the insurer based on the taxpayer’s estimated annual income. (The IRS reconciles the PTCs with the taxpayer’s actual income at tax filing time, and the taxpayer must pay back any excess PTCs.) If enhanced PTCs are allowed to expire, millions of taxpayers who received advanced PTCs for 2025 won’t receive them for 2026 and will see dramatic increases to their health insurance premiums. Stay tuned.
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