Extending enhanced tax credits for Affordable Care Act Health Insurance Marketplace plans was what Democrats were holding out for in the government shutdown that ended on Nov. 12. The continuing resolution put forth by Republican lawmakers ended up passing without that extension, and ACA policyholders are girding for premium hikes that could more than double.
“There’s really no uncertainty about that — it’s basically pretty straightforward, simple math,” said Justin Sydnor, a professor of risk and insurance at the Wisconsin School of Business. “The way the tax credits work is that they’re tied to a share of the percent of your income, and the enhanced tax credits increased or decreased the share you would have to pay, and increase the income range for people who are eligible. So they’ll definitely go up. The share that you’re responsible for paying goes up if those subsidies expire — how much depends a lot on your income level.