Health insurance premiums for adults aged 50-64 are significantly higher than those for younger adults, often reaching up to three times more for individuals with coverage through the individual market. Enhanced Premium Tax Credits are crucial in keeping these costs manageable, enabling millions to maintain affordable and comprehensive coverage.
According to research from AARP Public Policy Institute, 4.8 million adults aged 50-64—92 percent of those enrolled in Marketplace coverage—could face increased premiums if Congress does not extend these tax credits. These credits help middle-income consumers by reducing their health coverage costs, requiring them to contribute up to 8.5% of their household income towards their coverage.
The expiration of these tax credits would disproportionately affect those least able to bear the cost increase. Half of the affected consumers aged 50-64 have household incomes below 150% of the federal poverty level (FPL). At this income level in 2025, an individual earns less than $23,475 annually, or a couple earns below $30,660.
AARP’s analysis highlights the potential impact in several states: In Florida, 1.1 million adults aged 50-64 could lose access to enhanced premium tax credits; two-thirds have incomes below 150% FPL. In Georgia, 334,000 adults are at risk; 67% earn below this threshold. North Carolina could see 238,000 impacted; more than half earn under this level. Ohio has 109,000 affected individuals; nearly 40% fall under this category. Texas faces a risk for 799,000 adults; with 64% earning below the threshold.
The IRS reports that among people over 400% of the FPL ($62,600 for an individual in 2025) who receive tax credits, 42% are over age 55. The health care tax credits serve as a vital support for Americans lacking employer-provided coverage and not yet eligible for Medicare.
A sudden rise in premiums could force millions out of their health coverage and increase costs for others within the system while destabilizing state marketplaces and raising demand for safety-net care at taxpayers’ expense. Immediate action from Congress is necessary to prevent these increases from making health care unaffordable for many middle-income Americans.
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