The expanded premium tax credits under the American Rescue Plan and the Inflation Reduction Act have brought much-needed relief to households earning over 400% of the Federal Poverty Level (FPL). These are not hedge fund millionaires.Recent projections show that without these subsidies, many middle-income families could see their annual premiums rise by over $11,000. Keeping the same insurance plan could cost about 75% more. Ouch. In high-cost areas like Colorado’s Western Slope, rates could jump by as much as 38%.
The Risk of Inaction by Congress
If Congress fails to act, the ripple effects could be severe. More families might exit the Affordable Care Act (ACA) marketplace entirely. As healthier individuals drop coverage, premiums rise for those who remain — creating a vicious cycle.Consider Vermont’s example. Blue Cross Blue Shield projects a 6.6% premium increase in 2026 due to healthier enrollees opting out. Oregon reports a similar trend: fewer enrollees leading to higher prices for those left in the pool.
Bipartisan Effort in a Divided Congress
The Bipartisan Premium Tax Credit Extension Act, introduced by Rep. Jen Kiggans (R-VA) and Rep. Jared Golden (D-ME), is a rare example of lawmakers crossing party lines. They’re joined by co-sponsors like Jeff Hurd (R-CO) and Brian Fitzpatrick (R-PA), supporting a cause that affects Americans across the political spectrum.Golden, a vocal advocate for Maine constituents, made the stakes clear. “Allowing the ACA enhanced premium tax credits to expire will increase costs for Maine families. That’s simply not an option,” he said. Around 61,000 Mainers rely on ACA marketplace plans — the urgency is real.
On the other side of the aisle, Kiggans emphasized the practical benefits. “This isn’t about red versus blue. It’s about ensuring healthcare access for hardworking families who play by the rules,” she said during the bill’s introduction.Unlikely alliances are forming. Why? The urgency is clear. Middle- and lower-income individuals, freelancers, and small business owners are key demographics for lawmakers on both sides. Millions among them depend on these tax credits to keep healthcare affordable.Still, expect more political fireworks. Not everyone in Congress is on board. Some Republicans argue that ongoing subsidies overextend federal programs and hinder long-term cost control. Meanwhile, Democrats question whether a one-year extension is sufficient.
Can Congress Beat the Clock?
The bill’s fate is tied to a ticking clock. The legislative calendar is packed, and the stakes couldn’t be higher.
The Bipartisan Premium Tax Credit Extension Act must clear several hurdles:
- Committee review (2–4 weeks): The bill’s first stop, likely in a health or tax-focused committee
- House vote (1–2 weeks): If approved, it moves to a full House vote
- Senate review (3–6 weeks): Then it heads to the Senate, where amendments and debate could delay progress
- Reconciliation (if needed) (1–2 weeks): Lawmakers must resolve differences between House and Senate versions
Optimistically, this could happen by late November. But delays are common.
Why September Is Critical
Here’s the kicker: insurance companies must set 2026 rates months in advance. Right now, they’re assuming these subsidies will expire. The result? Higher premiums are already being baked into next year’s plans.If Congress acts quickly, an extension could reset the game. Starting November 1, insurers might be able to lower premiums during open enrollment. The longer this drags on, the less chance there is to adjust those rates.Consumer advocates like Adam Fox of Colorado Consumer Health Initiative are sounding the alarm. “We have days, maybe weeks, to get this done,” he said. “Otherwise? It will hit families hard.”
What’s Next?
It’s not all doom and gloom. The bipartisan cooperation on this bill is refreshing. It shows that lawmakers can still come together on common-sense solutions. But will they act fast enough to help middle-class families who can’t afford to wait?Stay tuned. This fight may determine whether millions can keep affordable health coverage — or face an unexpected financial squeeze.
Related topics:
