Diogenes
Nemo me impune lacessit
The enhanced subsidies for Affordable Care Act (ACA) Marketplace health insurance plans—commonly referred to as premium tax credits—were originally enacted as temporary measures to provide pandemic relief.
They were first introduced in the American Rescue Plan Act (ARP) of 2021, which expanded eligibility beyond the ACA's original income limits (up to 400% of the federal poverty level) and increased the subsidy amounts to cap premium costs at a lower percentage of household income (as low as 0% for those earning up to 150% of the poverty level).
These changes were designed to make coverage more affordable during the COVID-19 crisis, boosting enrollment from about 12 million in 2021 to a record 24 million in 2025.
Congress later extended the enhancements through the end of 2025 via the Inflation Reduction Act (IRA) of 2022, tying the expiration explicitly to December 31, 2025.
The sunset date aligns with the calendar-year structure of ACA Marketplace plans, allowing the subsidies to remain in effect for the full 2025 plan year (which begins January 1, 2025) before reverting to the pre-2021 ACA subsidy formula on January 1, 2026.
They were first introduced in the American Rescue Plan Act (ARP) of 2021, which expanded eligibility beyond the ACA's original income limits (up to 400% of the federal poverty level) and increased the subsidy amounts to cap premium costs at a lower percentage of household income (as low as 0% for those earning up to 150% of the poverty level).
These changes were designed to make coverage more affordable during the COVID-19 crisis, boosting enrollment from about 12 million in 2021 to a record 24 million in 2025.
Congress later extended the enhancements through the end of 2025 via the Inflation Reduction Act (IRA) of 2022, tying the expiration explicitly to December 31, 2025.
The sunset date aligns with the calendar-year structure of ACA Marketplace plans, allowing the subsidies to remain in effect for the full 2025 plan year (which begins January 1, 2025) before reverting to the pre-2021 ACA subsidy formula on January 1, 2026.
