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The US House of Representatives has voted in favor of reinstating the expired COVID-era expansion of the Affordable Care Act (ACA) health insurance tax credits, known as the enhanced premium tax credit (EPTC), for three years. However, the measure has already been rejected by the Senate. The EPTC program provided free or discounted monthly premiums to Americans purchasing insurance through the ACA marketplace, with the cap on premium contribution levels lowered for recipients at all income levels.
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US House of Representatives Votes to Revive Lapsed Health Insurance Subsidies
Despite its earlier rejection by the Senate, the United States House of Representatives has moved forward with a measure to reinstate enhanced health insurance subsidies which expired at the end of last year. The proposed legislation, approved by the House, aims to reestablish the Affordable Care Act (ACA) health insurance tax credits, expanded during COVID, for another three-year period.
Understanding the Enhanced Premium Tax Credit (EPTC)
The EPTC, as the program is known, plays a crucial role in aiding Americans to afford their monthly health insurance premiums. The program offers access to free or discounted premiums for those purchasing their insurance through the ACA marketplace. The expansion of these credits was part of the American Rescue Plan Act (ARPA) in 2021, but without congressional intervention, this extended benefit has ended. However, the original, non-expanded credits continue to be available.
Eligibility for EPTC
Before the expansion, only Americans earning between 100% and 400% of the federal poverty level qualified for the tax credit. To give a sense of scale, this was equivalent in 2025 to an income range from $15,650 to $62,600 for a single-person household and $32,150 to $128,600 for a family of four. With the introduction of the EPTC, individuals earning more than this threshold saw their monthly health insurance premiums capped at 8.5% of their total income. Furthermore, the EPTC significantly reduced or even eliminated premiums for those earning between 100% and 150% of the federal poverty line. In addition, the cap on premium contribution levels was lowered for all income levels.
Extension and Expiry of EPTC
While the EPTC was originally set to run its course at the end of 2022, the 2022 Inflation Reduction Act (IRA) provided an extension, setting a new end date of 2025. However, despite House approval, the New York Times reports the legislation faces a dead-end, as it has already been declined by the Senate.
Bipartisan Support and Future Discussions
Nonetheless, the bill was supported by a significant margin of 230-196, with several Republicans also backing the measure. While this legislation is currently at a standstill, some analysts have suggested that it could prompt additional discussions around extending the subsidies. Last year, four House Republicans joined a Democratic petition to override House Speaker Mike Johnson’s decision not to allow a vote on the bill, according to ABC News. Reports from ABC News suggest that lawmakers from both chambers are discussing various possible resolutions, addressing topics such as fraud, abortion coverage, and income limits.
Reaction from Rep. Jared Golden
Following the vote, Maine’s Rep. Jared Golden (D) expressed his support for the proposal, stating, “Mainers work hard but despite all their efforts, the cost of living keeps going up. The last thing they need is for their health insurance premiums to double because politicians in D.C. can’t get their act together.” He added, “I have worked for months with a group of my Republican colleagues to build the bipartisan coalition needed to extend these credits, and today that work paid off.” Golden also criticized GOP leaders for allowing the credits to expire but showed optimism for reaching a deal in the Senate that could potentially reduce health care costs for millions of Americans.
For additional information, you can read the full press release here.
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