Expiration of Enhanced Health Care Tax Credits Could Increase Costs for NH Families

 

 

 

Watch the full event here 

 

Concord, NH– Some in Congress are pushing to eliminate expansions to tax credits that help working families in New Hampshire save thousands on their health care. As Congress negotiates a budget package, reports indicate that Republican leaders have rejected efforts to extend these credits, threatening affordable coverage for Granite Staters. Instead of prioritizing lower health care costs, they are focused on handing out more tax breaks to the wealthiest Americans.

 

Without Congressional action, enhanced health care tax credits that have helped thousands of Granite Staters afford coverage will expire after 2025, leading to higher costs for families and individuals across New Hampshire, according to Phil Sletten, Research Director at the New Hampshire Fiscal Policy Institute (NHFPI).

 

If these tax credits expire, families across New Hampshire will face significant premium cost increases, likely forcing many to forgo coverage and lose access to routine and preventive care. 

 

“The tax credits created under the Affordable Care Act and expanded through the American Rescue Plan Act and the Inflation Reduction Act have been critical for making health insurance more affordable for many New Hampshire families,” said Sletten. “These credits help people who earn too much to qualify for Medicaid but still struggle to afford coverage. If they expire, many families will see significant increases in their monthly insurance costs.”

 

Sletten pointed to data showing the impact of the enhanced credits. “For example, a New Hampshire couple, both age 60, with an annual income of $75,000 saved an estimated$985 per month in 2021 because of these credits, and a family of four earning $120,000 saw their premiums drop by about $291 per month. Nationally, ACA marketplace enrollment has increased by 88% since these credits were expanded, with the biggest enrollment growth among households with low incomes.”

 

Beyond affordability, access to care remains a challenge in New Hampshire. “Workforce shortages and limited specialized services can make it difficult for people to get the care they need, even when they have insurance,” said Sletten. “If these tax credits are not renewed, state policymakers and health care providers will likely need to find other ways to reduce costs and help maintain access to coverage.”

 

Sletten emphasized that proactive and innovative solutions could be used by both state officials and providers. “Expanding Medicaid access, improving benefit navigation services to help people enroll in coverage, and strengthening the health care workforce are all steps that could help,” he said. “If fewer federal dollars are available to lower costs, creative policy solutions could help ensure that Granite Staters don’t lose coverage or forgo necessary care.”

 

You can watch the full event here, and learn more about Republican efforts to raise health care costs here.