Congress is moving to restore enhanced ACA premium tax credits after their expiration at the end of 2025 led to significant premium increases for 2026 coverage. The House is poised to pass legislation extending the enhanced tax credits for three years, through the 2028 coverage year. The vote is being driven by bipartisan political pressure, including a discharge petition led by Democrats and moderate Republicans to force floor consideration despite opposition from House Republican leadership.

The extension would maintain expanded eligibility for consumers earning above 400% of the federal poverty level. It would also preserve income-based caps on premium contributions, helping limit out-of-pocket costs for enrollees. Notably, the legislation is a “clean” extension and does not include new eligibility rules, verification requirements, or program integrity changes.

However, House passage does not guarantee Senate approval, where discussions are reportedly focused on a shorter extension and potential reforms. As a result, the timing and final outcome remain uncertain for consumers, insurers, and brokers, and any final legislation may differ in duration or structure.

Source: National Association of Benefits and Insurance Professionals