ACA tax credit expiring this year could impact over 900K North Carolinians

Unless renewed by Congress, an Affordable Healthcare Act tax credit set to expire at the end of 2025 could impact hundreds of thousands in North Carolina.

Enhanced Premium Tax Credits (EHPC) help subsidize premium costs for millions of Affordable Healthcare Act (ACA) enrollees and are set to expire on Dec. 31.

According to KFF, a policy research and polling organization, North Carolina had 952,814 enrollees, with 96% of that number using the tax credit to aid in premium payments. Per KFF, the average premium tax credit amount in North Carolina that year was $558.

EHPC has cut premium payments by an estimated 44%, and loss of the credit would likely impact rural, elderly and self-employed enrollees the most, per KFF.

A survey conducted in mid-February found 78% of voters in swing states supported the extension of the EHPC. The question did not frame the credit as part of the ACA or “Obamacare, but instead framed the EHPC as allowing “working families to afford premiums for health insurance.”

The survey, conducted by polling outfit Fabrizio Ward, included 1,000 registered voters across 18 congressional districts rated as “toss-up” by the Cook Political Report.

“Even among Trump Voters, the premium tax credits rank second, only narrowly behind support for their top choice of extending the 2017 Trump Tax Cuts and Jobs Act,” the survey states.

The expiring EHPC issue arises as the Trump administration is trying to rein in costs, reduce fraud and raise accountability in health care.

The Centers for Medicare & Medicaid Services recently proposed a comprehensive set of changes to the Health Insurance Marketplaces aimed at improving program integrity, reducing improper enrollments and stabilizing health insurance markets.

Key proposals include significant modifications to enrollment processes, eligibility verification and coverage standards.

The rule seeks to increase consumer accountability by shortening the annual Open Enrollment Period, implementing stricter income verification processes and introducing measures to prevent unauthorized enrollments.

Notable changes include removing DACA recipients, known as Dreamers, from eligibility for subsidized health coverage, requiring tax return reconciliation for premium tax credits and mandating preenrollment verification for special enrollment periods.