Washington lawmakers urge Congress to extend tax credit aimed at cutting health insurance costs
BELLEVUE, Wash. — Gov. Bob Ferguson and Democratic Congressional leaders urged Congress to prevent tax credits, aimed making health care more affordable, from expiring at the end of the year.
At a press conference Friday, Ferguson, Washington Reps. Suzan DelBene and Kim Schrier and House Minority Leader Hakeem Jeffries called on Congress to extend the Enhanced Premium Tax Credits.
The program, which was approved as part of the American Rescue Plan Act in 2021, makes private health insurance plans through Washington state’s Health Benefit Exchange more affordable. It is set to expire at the end of 2025 unless Congress extends it. If the subsidy expires, the Congressional Budget Office estimates enrollees would drop, reducing federal budget costs.
However, Washington leaders called it “morally bankrupt” to not extend the credits.
“Failing to extend these common-sense tax credits is one more way the federal government is making health care less affordable and less accessible to residents across our state,” Ferguson said in a statement.
About 286,000 Washington residents are enrolled in private plans through the Health Benefit Exchange, and 75% of them qualify for federal premium tax credits, according to the Washington Office of the Insurance Commissioner.
If the tax credit goes away next year, the Washington Health Benefit Exchange estimated about 80,000 of those recipients wouldn’t be able to afford their plan and would lose coverage.
The credits save Washingtonians about $1,300 annually in premiums, according to Ferguson. If they go away, a King County family of three making $52,000 per year could expect to see their premiums increase from $490 per year to $2,800.
The looming expiration date comes at the same time as insurance premiums are expected to increase across Washington. Insurance Commissioner Patty Kuderer announced earlier this week that 12 insurance providers who can sell plans in Washington were found justified to increase rates 21%.
Health insurance companies cited several reasons for the rate increase, including uncertainty over whether the tax credits will expire, rising health care and prescription drug costs, more people using services, hospital consolidation and higher provider rates.