Baldwin Leads Bill to Cut Health Care Costs, Permanently Extend Affordable Care Act Tax Breaks for Working Families

As ACA Marketplace sees record-breaking enrollment in Wisconsin, tax breaks saving Wisconsinites over $570 on average each month set to expire
WASHINGTON, D.C. – U.S. Senators Tammy Baldwin (D-WI) and Jeanne Shaheen (D-NH) introduced theirHealth Care Affordability Act—legislation to make permanent the Affordable Care Act’s (ACA) enhanced premium tax credits (PTCs) for Marketplace coverage, which would prevent millions of Americans’ health care costs from increasing at the end of 2025. In Wisconsin,231,000 Wisconsinites–over 85%of ACA Marketplace enrollees – saved$573 each month on averagewith these enhanced tax credits in 2024. If these tax credits expire at the end of this year, hundreds of thousands of Wisconsinites will face significantly higher premium costs, with anestimated30,000 Wisconsinites losing health insurance.
“Every Wisconsinite should be able to get the health care they need. Period. Our Affordable Care Act put health care within reach for millions of Americans who could for the first time afford and access the comprehensive care they need to stay healthy, but there’s more work to do,”said Senator Baldwin.“I’m looking at every way we can further lower costs and expand access to good health care for families – and that starts with not jacking up costs on Wisconsinites. If we don’t make these tax breaks permanent, thousands of working families will see their health care bills skyrocket, potentially leaving some without the lifesaving care they need.”
Nationally, an average enrolleesaved an estimated $700 in 2024because of the PTC enhancements, with average monthly premiums over 32 percent lower than in 2021, before the enhancements took effect. According to theCongressional Budget Office (CBO), if the PTCs are allowed to expire at the end of this year, health care premiums would increase by 7.9 percent and 3.8 million Americans would lose their health insurance altogether.
Last week, the Biden Administrationannouncedthat with a week left to go in the 2025 enrollment period, nearly 24 million consumers – including a record-breaking306,470 Wisconsinites– have signed up for ACA Marketplace coverage. This year’s open enrollment period ends on January 15, 2025.
TheHealth Care Affordability Actwould make permanent the ACA PTCs for Health Insurance Marketplace coverage as passed in theAmerican Rescue Plan Actand extended through the Inflation Reduction Act, both of which Senator Baldwin supported. Those enhanced tax credits increase the value of the tax credits available to people with income between 100 and 400 percent of the federal poverty level (FPL) while expanding eligibility for premium tax credits to include individuals with income above 400 percent of FPL.
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