The Affordable Care Act has expanded affordable health coverage to millions of Americans. Perhaps no state in the country has taken more advantage of the opportunity presented by health reform than California — reversing its position as a state with one of the highest levels of uninsurance to one of the lowest.
Given these impacts, Blue Shield of California was asked to join more than 25 large health groups across the nation, including the American Medical Association, National Urban League, American Cancer Society and more, to send a letter to Washington, D.C. The letter outlines the severe implications of allowing expanded Affordable Care Act tax credits to expire at the end of 2025.
“More than 20 million Americans are at risk of a cost-of-living crisis that only Congress can prevent,” the letter opens.
“This tax credit lowers the monthly premiums paid by people who buy coverage in the state and federal Marketplaces. If Congress fails to extend the tax credit, the cost of health insurance will explode, with typical American families forced to pay hundreds or thousands of dollars more each month to keep the coverage they have,” explains the letter further.
Impacts in California
In California, the Kaiser Family Foundation estimates that 250,000 people in the Affordable Care Act marketplace would become uninsured due to health plan changes as a result of the recent One Big Beautiful Bill, through additional limitations on eligibility determinations, re-enrollment and coverage of immigrant populations.
But the loss of the expanded Affordable Care Act tax credits would increase this number of uninsured to over 400,000 people if the tax credits are allowed to expire.
Read the full letter to Congress here.