Are you one of the more than 21 million Americans who purchased health insurance through the federal marketplace in 2024? If so, you may want to pay attention to potential changes in your premiums after 2025.
The premium tax credit, which makes health insurance more affordable for marketplace participants, was temporarily enhanced during the Covid-19 pandemic but is set to expire after 2025 unless Congress takes action. This means that without an extension, virtually everybody could be facing higher premiums in the near future.
President Joe Biden has proposed making the premium tax credit expansion permanent, highlighting the program’s benefits for communities of color. However, this move could increase the federal budget deficit significantly over the next decade, according to the Congressional Budget Office and Joint Committee on Taxation.
Without an extension from Congress, marketplace premiums could increase for Americans across the income spectrum, impacting families differently based on their income level. For example, a typical family of four earning $60,000 could see monthly premiums more than triple, while a family earning $125,000 might face an increase of over $7,000 annually.
It’s essential to stay informed about these potential changes and how they could impact your finances. At Extreme Investor Network, we aim to provide valuable insights and resources to help you navigate the ever-changing landscape of personal finance. Stay tuned for more updates and tips to help you make informed financial decisions.