MONTGOMERY– Nearly half a million Alabamians could see their health insurance costs rise dramatically if Congress allows enhanced Premium Tax Credits (ePTCs) to expire at the end of 2025. These federal subsidies, enacted under the American Rescue Plan Act and extended by the Inflation Reduction Act, have been critical in keeping health insurance accessible for Alabama families.
Some Healthcare.gov premiums in the state could nearly double — increasing by 93% on average — if Congress does not extend the enhanced credits, according to KFF. That would push an estimated 130,000 Alabamians off their health coverage, threatening both family security and the state’s economy.
“Without congressional action, families will face impossible choices between paying for health insurance or putting food on the table,” said Debbie Smith, Cover Alabama campaign director at Alabama Arise. “These are small business owners, older adults and working families who can’t absorb a hike in premiums. Congress has the power to prevent this crisis.”
The failure to extend the enhanced premium tax credits would hurt all Alabamians. A rollback of the credits could mean $1.14 billion in lost economic activity and nearly 10,000 jobs lost statewide in 2026, according to the Commonwealth Fund.
Older Alabamians face increased risk
One group is especially at risk of higher prices and coverage losses: Alabamians in their 50s and 60s. For example, a 60-year-old couple making about $82,000 a year would see premiums for a benchmark plan jump from around $6,970 to more than $27,267 annually without the enhanced credits.
Because Alabama has not expanded Medicaid to cover adults with low incomes, the state will feel the impacts even more acutely. Hundreds of thousands of residents already fall into the “coverage gap,” unable to afford private insurance but ineligible for Medicaid. The expiration of ePTCs would leave even fewer options for affordable coverage.
“These numbers are not abstract — they represent real people in our communities,” Smith said. “When health insurance becomes unaffordable, people delay care, skip prescriptions and end up sicker. Without Medicaid expansion, Alabama already lags behind in coverage. Losing these tax credits would make a bad situation much worse.”
The Cover Alabama coalition is urging residents to contact their members of Congress to demand extension of the ePTCs. Alabamians also can add their voices by signing the coalition’s petition at coveralabama.org/petition.
Media Release/Whitney Washington/Communications Associate/Alabama Arise
