As Democrats and Republicans struggle to reach a budget deal ahead of an impending government shutdown, Cover Alabama—a nonpartisan alliance of over 100 groups advocating for improved health care in the state—is urging Congress to include the extension of Affordable Care Act (ACA) enhanced premium tax credits in any such deal.
Without an extension, the ACA enhanced premium tax credits will expire at the end of this year, causing the cost of ACA Marketplace health coverage to increase dramatically for millions of Americans.
“These tax credits are absolutely critical to Alabama,” said Debbie Smith, Alabama Arise’s Cover Alabama campaign director. “Because our state has not expanded Medicaid, more than 400,000 Alabamians rely on the Marketplace for coverage. Without these tax credits, families will lose health coverage, and our fragile health care system will be pushed deeper into crisis.”
If the ePTCs expire, it is estimated that around 130,000 Alabamians will lose their health coverage, while thousands more will face major increases to costly premiums. Additionally, rural hospitals (which are already heavily underfunded in the state) will face greater uncompensated care costs, putting more facilities at risk of closure and threatening to further deprive rural communities in the state of accessible treatment and care.
Smith also emphasized how important the tax credits can be for small businesses and their employees, as many lack access to employer-based health insurance. Without the ePTCs, small businesses across Alabama could lose access to quality health coverage.
“About half of all adults enrolled through Healthcare.gov are small business owners, employees or self-employed individuals,” Smith stated.
Cover Alabama has also started a petition calling on Alabama’s congressional delegation to support the inclusion of a tax credit extension in the ongoing budget negotiations.
“To our elected leaders in Congress: We, the undersigned, urge you to take immediate action to protect affordable health care for Alabama families by extending the enhanced Premium Tax Credits (ePTCs) before they expire at the end of 2025,” the petition reads.
“These enhanced subsidies are a lifeline for hundreds of thousands of low- and moderate-income Alabamians who otherwise would struggle to afford health coverage — including individuals making as little as $15,650 a year or families of four earning around $32,000,” it continues. “If Congress fails to act, healthcare.gov premiums in Alabama could increase by an average of 93 percent by 2026 — forcing families, small business owners and older adults to drop their high-quality health coverage and leaving many of them uninsured.”
The petition goes on to urge Alabama’s delegates to include a premium tax credit extension in any must-pass, end-of-year legislation. According to the coalition, the petition already has over 900 signatures and will remain open until Congress extends the ePTCs.
