ACA Tax Credits & Rising Health Costs

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The ACA Tax Credit Fight and Rising Health Costs: What Insurance Agencies Need to Know

The debate over ACA tax credits and rising health costs is reshaping the landscape for health insurance agencies and brokers. New national polling shows strong public support for extending Affordable Care Act marketplace tax credits, while congressional leaders are warning that healthcare expenses continue to climb at an unsustainable pace. Together, these developments create an urgent environment for brokers advising both marketplace consumers and employer groups.

A new Marquette University Law School poll found that 7 in 10 adults want the ACA premium tax credits to continue rather than expire at the end of the year. This aligns with previous national polling showing broad support across political groups. The Milwaukee Journal Sentinel reports that the question of whether Congress extends these subsidies will directly impact marketplace affordability—millions of consumers depend on them to keep premiums manageable.

At the same time, the Senate Finance Committee held a high-profile hearing where lawmakers from both parties described a mounting affordability crisis. According to Becker’s Hospital Review, committee leaders warned that premiums and out-of-pocket expenses are rising sharply. Sen. Ron Wyden described the situation as a “health cost freight train … hurtling into view,” while Sen. Mike Crapo argued the system is “broken” and that subsidies alone can’t offset the underlying cost increases.

For health insurance agencies and brokers, these two storylines combine to create an environment that demands proactive communication. Marketplace clients may face higher premiums if subsidies expire, while employer groups are already feeling pressure from rising healthcare costs. Ensuring clients understand what is happening—without speculation—helps position your agency as a strategic partner rather than just a policy seller.

The congressional hearing also highlighted growing bipartisan interest in pharmacy benefit manager (PBM) reform, signaling potential downstream effects on drug-cost structures and plan design. While no legislation was finalized, the focus suggests that transparency and cost-management conversations will become increasingly important parts of broker-client strategy.

As the policy debate continues, agencies should monitor subsidy decisions closely, prepare clients for potential changes during renewal cycles, and reinforce the value of ongoing advisory support. Rising costs and shifting regulations mean consumers and employers need informed guidance more than ever.

TLD continues to actively monitor the ongoing policy discussions surrounding ACA tax credits and the broader rise in healthcare costs. As the landscape evolves, we will keep you informed with timely updates and guidance to help you navigate any changes that may impact your clients and your business.

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