Enhanced Healthcare Tax Credits Have This Family Covered

Over nine million people have gained affordable, quality healthcare coverage since 2021. This is thanks, in part, to enhanced Advance Premium Tax Credits. These tax credits help people buy healthcare plans on the Marketplace by reducing or eliminating their premiums, based on income.

Julie¹ lost her job at the start of the COVID-19 pandemic, while she was pregnant with her second child. This was a big concern for her family because both of her children have asthma. For her son, the disease is more serious. He needs daily steroid inhalers to manage his symptoms, and the copays are expensive.

At the time, Julie qualified for Medicaid healthcare coverage – a safety net she says was lifesaving, as without assistance her son’s asthma medication would be unaffordable. When her children needed treatment at the children’s hospital intensive care unit, Medicaid helped cover bills that totaled over $50,000 and meant her family didn’t go bankrupt.

Now Julie is back to working full-time, and her job offers healthcare coverage. However, the high monthly premium of $2,200 to cover herself and her kids is something she couldn’t afford.

Enhanced Tax Credits Mean Affordable Healthcare

Luckily, Julie did some research online and found a plan on the Marketplace for $1,500 a month. With enhanced healthcare tax credits to lower her costs, she and her children were able to get coverage for a much more affordable $600 monthly premium. Most people with annual earnings above the Federal Poverty Level (FPL), or $25,820 for a family of three, qualify for healthcare tax credits and can get an estimate of their premium costs using this calculator. Once people sign up for coverage and pay their premium, the government pays the tax credit directly to the insurance company. For Julie, this tax credit means her children can get the healthcare they need to manage their asthma.

Better Healthcare Coverage Means Not Having to Risk Your Health

Now when Julie takes her kids to the doctor, she’s not left wondering if they can really afford the tests their doctors recommend. She knows they have the coverage they need.

Enhanced healthcare tax credits have also impacted her own healthcare. When her doctors found that she has dense breast tissue, they recommended Julie follow up with a mammogram. Thanks to her affordable coverage, she didn’t worry about the out-of-pocket costs and was able to get the tests she needed. Without that coverage, Julie isn’t sure she would take the necessary steps to make sure she was well, opting instead to save her money to help her children.

Enhanced Healthcare Tax Credits Are Set to Expire

Julie feels grateful for the safety nets that help her family get the healthcare they need. Like many people, enhanced healthcare tax credits mean they can afford coverage. Unfortunately, these enhancements are set to expire at the end of 2025. If they do, healthcare costs for many people will soar.

Congress must act now to make enhanced healthcare tax credits permanent. This will help ensure many people can continue to afford quality healthcare coverage. As Congress decides whether to act, you can make your voice heard. Urge Congress to act now by signing the American Lung Association petition.

For people who are uninsured or looking for a health plan that works better for them, open enrollment at Healthcare.gov is happening from November 1 - January 15 in most states. Coverage is affordable; with 4 out of 5 enrollees able to find plans that cost less than $10 a month. Visit Lung.org/openenrollment for more information about signing up for coverage for people with lung disease.

¹ Julie’s real name has been changed in this article to maintain her and her family’s privacy.