Congressional Budget Office: Here’s what would happen if ACA tax credits are extended, family glitch fixed

At the request of federal lawmakers, the Congressional Budget Office released a report July 21 that details the financial impact of extending the ACA premium tax credits to become permanent, along with closing the “family glitch.”

Advertisement

Ten things to know:

If ACA premium tax credits became permanent:

  • Premium tax credits would increase to $305.5 billion.
  • The average annual credit for a new enrollee would be $4,980 from 2023 to 2032.
  • Federal deficits would increase by $247.9 billion between 2023 and 2032. 
  • From 2023 to 2032, there would be 4.8 million net enrollees, with 5.2 million new enrollees and a loss of 400,000.
  • There would be 200,000 more enrollees in Medicaid and the Children’s Health Insurance Program.
  • There would be 500,000 fewer nongroup enrollees because of coverage purchased outside an ACA marketplace.
  • There would be 2.3 million fewer people enrolled in employer-sponsored plans.

If the “family glitch” was fixed:

  • Nongroup enrollees would increase on average by 900,000 every year from 2023 to 2032.
  • Nongroup enrollment would come from 600,000 fewer people with employer-sponsored coverage, 400,000 fewer people without coverage and 100,000 more people enrolled in Medicaid and CHIP.
  • The federal deficit would increase by $33.6 billion because of a $43.7 billion increase in spending.
Advertisement

Next Up in Payer

Advertisement

Comments are closed.