In a letter sent Monday to House Budget Chair Jodey Arrington (R-Texas) and House Ways and Means Chair Jason Smith (R-Mo.), CBO said 3.4 million more people annually would have health insurance if the subsidies were made permanent.
The subsidies were originally intended for people who earn up to 400 percent of the federal poverty level to obtain coverage. The subsidies were expanded under the COVID-era American Rescue Plan, capping what people with higher incomes pay for a silver plan premium at 8.5 percent of their income.
The subsidies were set to expire in 2022, but they were extended to 2025 as part of the Inflation Reduction Act. Now, whoever controls Congress after the November elections will be able to decide whether to let the subsidies expire or seek to extend them permanently.
The tax credits have helped millions of people buy insurance and lowered premiums for others, but Republicans argue too many high earners are getting taxpayer-subsidized insurance. The CBO score gives Republicans new ammunition, and they can claim major savings by letting the tax credits expire.
“At a time when we are experiencing a record $35 trillion national debt with health care expenditures accounting for nearly 18 percent of GDP, it is unconscionable that Democrats would continue to push for massive taxpayer-funded handouts to the wealthy and large health insurance companies,” Arrington and Smith said in a joint statement.
