On October 6, Senator Kirsten Gillibrand of New York unveiled her proposal to make the expanded Premium Tax Credit (PTC) a permanent fixture. This initiative is designed to extend the temporary coverage increases that were put in place during the pandemic. Gillibrand stressed the need for swift action on this legislation within the current congressional session, cautioning that, without it, average monthly premium costs for New Yorkers could rise by as much as $120.
The Premium Tax Credit, a key element of the Affordable Care Act that launched in 2010, provides qualifying low-income families with subsidies for commercial insurance through tax refunds. The American Rescue Plan Act of 2021 broadened the PTC’s coverage and alleviated some of the premium burdens for current beneficiaries. Following that, the Inflation Reduction Act of 2022 prolonged these enhancements for an additional three years, but those provisions are set to expire at the end of 2025.
Gillibrand’s Health Care Affordability Act aims to make this three-year extension a permanent solution, ensuring that families in need continue to receive support. She pointed out that approximately 200,000 financially struggling families in New York benefit from this program, with the national total reaching 20 million. If these extensions are allowed to lapse, New Yorkers could see an average annual increase of $1,440 in premium costs, which breaks down to $120 each month—a substantial burden for many low-income households.
As the current congressional session is scheduled to wrap up by the year’s end, any pending legislation will fall by the wayside and would need to be reintroduced in the new session. With expected changes in Congress, the proposal’s fate hangs in the balance, particularly since health care affordability is a critical issue for both parties. Gillibrand is advocating for a Senate vote in the two months left in the session, indicating that Senate Majority Leader Chuck Schumer, her fellow New Yorker, is likely to back the initiative. However, she expressed concern that if Democrats lose their Senate majority in the upcoming elections, it remains uncertain whether the new leadership would make this vote a priority.
Gillibrand underscored that affordable health care is a pressing issue across the nation, affecting everyone’s quality of life. Joining her at the announcement, Mark Hannay, executive director of the advocacy group Metro New York Health Care for All, highlighted that many of those benefiting from the expanded tax credits are Republicans, advocating for the notion that this should be a bipartisan issue rather than a political tool.
