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The latest on federal enhanced premium tax credits

Enhanced premium tax credits will expire at the end of the year. Read how the popular program has helped thousands of Washingtonians, and about our lobbying efforts to have the program extended beyond 2025.
March 13, 2025   |   2 minute read

Congress introduced enhanced premium tax credits in 2010 as part of the Affordable Care Act. In 2021 and 2022, the premium tax credits were enhanced by the America Rescue Plan Act and the Inflation Reduction Act, respectively.  

In Washington state, enhanced premium tax credits

  • Drove record enrollment in health plans
  • Dropped uninsured rates to historic lows  
  • Lowered out-of-pockets costs
  • Helped thousands of residents avoid stifling debt

The enhanced premium tax credits also made healthcare more affordable and accessible for middle- and low-income residents, self-employed workers, older Washingtonians, and residents of rural communities

Health benefit impact in Washington infographic

Congressional reauthorization

Federal enhanced premium tax credits are set to expire at the end of 2025. For the program to continue beyond this year, the United States Congress will need to reauthorize the credits. 

Without an extension

  • Premiums will increase for enhanced tax credit recipients in Washington by some 72%. 
  • The number of enhanced premium tax credit recipients in the state who will forgo coverage altogether will approach 80,000. 
  • The amount of lost federal funds from enhanced premium tax credits will be $275M.*

Maintaining progress

At LifeWise, we’re advocating on our members’ behalf and working hard to encourage federal policymakers to extend the credits. Reauthorizing the enhanced premium tax credits is critical to the health of the members we serve. It’s also vital to our mission. We’re here to provide health plans that open access to quality healthcare for more people. The tax credits help us do that. 

Learn more about how to identify if any of these tax credits are currently helping to subsidize your LifeWise health plan payments. 

Let’s keep a good thing going

Join us in our effort to not just extend the premium tax credits beyond the end of the year, but to have Congress make them permanent. You can make a difference. Call or write to the congressional representatives in your area. Help your federal lawmakers understand the importance of the credits to you and your family.

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