On October 6, Senator Kirsten Gillibrand unveiled a legislative proposal aimed at making the expanded Premium Tax Credit (PTC) permanent, a policy established during the pandemic. During her announcement, she stressed the critical need to pass this proposal in the current congressional session, warning that failure to act could see monthly premium costs for New Yorkers rise by an average of $120.
The PTC is part of the Affordable Care Act (ACA), which has been in effect since 2010. It provides subsidies in the form of tax credits to eligible low-income families for purchasing commercial insurance. The American Rescue Plan Act of 2021 broadened the eligibility for these subsidies due to pandemic-related challenges, further lowering costs for those already qualifying. Following that, the Inflation Reduction Act of 2022 extended this increased subsidy until the end of 2025.
Gillibrand’s Health Care Affordability Act aims to make this three-year extension permanent, ensuring ongoing financial assistance for healthcare. She noted that around 200,000 financially struggling families in New York benefit from this program, contributing to a national total of 20 million recipients. Without new measures from Congress, the expiration of these subsidies would mean an annual premium increase of $1,440 for New Yorkers, or an additional $120 monthly—a heavy burden for many low-income households.
With the current congressional term set to conclude at the end of this year, any pending legislation would be discarded and must be reintroduced in the next session. As a change in congressional leadership looms, particularly regarding the critical issue of health care for both parties, the fate of Gillibrand’s proposal is uncertain. Nevertheless, she remains determined to secure a Senate vote within the next two months and is optimistic that Senate Majority Leader Chuck Schumer, also from New York, will back her efforts. She cautioned that if the Democratic Party loses its majority in the upcoming elections, the proposal’s future could be jeopardized.
Gillibrand emphasized that affordable healthcare is a nationwide concern impacting everyone’s livelihood. Mark Hannay, Executive Director of Metro New York Health Care for All, who accompanied her at the press conference, pointed out that many beneficiaries of the expanded PTC are Republicans, underscoring that this is a bipartisan issue that should not be clouded by political agendas.
