One Big Beautiful Bill lets ACA enhanced tax credits expire

[Shermann]

This issue has been overshadowed a bit by the Medicaid cuts. The ACA premium tax credits will expire this year and won't be extended.

https://www.kff.org/policy-watch/how-will-the-2025-budget-reconciliation-affect-the-aca-medicaid-and-the-uninsured-rate/

I was considering early retirement last year in my mid 50's and the ACA premium tax credits weighed heavily in my decision. I would have been eligible for them had I retired due to my low taxable retirement income. Those tax credits aren't means tested, it's all about your MAGI. So, in a way it would have been gaming the system because I have adequate 401k and Roth 401K savings. I asked my company's benefits plan experts what they thought about Trump extending the credits, and they thought he had no choice but to extend them. I deferred with that opinion and predicted they would expire. Sadly, I was correct. It's back to the salt mine for me.

[Doodley]

1. I've been using the tax credits. From next year, I will have to come out of retirement to afford healthcare.

Last edited Sat Jul 5, 2025, 03:02 PM - Edit history (1)

My current insurance will go from $200 per month or $2,400 per year to $13,000 per year (plus all the deductibles and co-pays). I am sorry Trump fucked up your plans.

[Shermann]

2. I'm fortunate by comparison

I'm in good health and am able to continue working. I feel badly for those less fortunate. Health care premiums will be my highest expense during early retirement without the credits.

[Ms. Toad]

5. $13,000 a month is even high for a premium before the ACA

Maybe $1300 a month.

$13,000 a month is higher than the high risk premium when insurance was allowed to charge based on individual health. Even without the subsidies, premiums for ACA compliant insurance are still community-based.

[Greg_In_SF]

12. $156,000

per year for health insurance? I'm skeptical to say the least.

[Doodley]

13. I corrected it. Thanks for pointing it out! The $13,000 is per year.

[dalton99a]

3. Millions will lose or drop coverage without the Biden-era subsidies

[Silent Type]

4. I believe the subsidies revert to the old, pre-pandemic levels. However, it will be a big increase for many.

The article linked says this: "On average, the enhanced tax credits have reduced premium payments by $705 a year on average for enrollees receiving tax credits."

I think the enhanced subsidy is greater than $705, but let's say it makes a difference of $1000 (or $80/month). That's bad, but lots of people will find a way to pay it compared to being uninsured.

What's really sad is that until Congress enacts Universal Coverage, we are stuck fighting about whether someone should be in Medicaid, ACA, or something else. Don't see that changing unfortunately.

[writerJT]

6. You are correct. The OP is worded incorrectly.

[Shermann]

10. Fair point, fixed

[writerJT]

7. The ENHANCED premium tax credits will expire

Not the entire tax credits.

[Shermann]

11. Fair point, fixed

[lostnfound]

8. Count me in on that, too

Keeping my job now in part because I know there’s no affordable medical insurance. Would’ve retired in January if the election had gone a different way

[superpatriotman]

9. is ACA dead?

Has Obama's crowing achievement now been erased from history so billionaires can buy another yacht for their caddies?