AR196

An Assembly Resolution urging Congress to renew the expiring enhanced premium tax credits.

Whereas, As part of the American Rescue Plan Act of 2021, Congress expanded access to premium tax credits to ensure Americans had greater access to affordable health insurance during the COVID-19 pandemic; and

Whereas, The 2022 Inflation Reduction Act extended the availability of these enhanced premium tax credits through 2025; and

Whereas, Enhanced premium tax credits are instrumental in reducing the cost of quality health insurance coverage for over 19 million Americans, including the over half a million New Jerseyans that receive coverage through Get Covered New Jersey; and

Whereas, Enrollment through Get Covered New Jersey has doubled since the State first launched its marketplace as a result of the increased levels of financial assistance available to individuals and families that otherwise would not be able to afford health insurance; and

Whereas, Nine in ten New Jerseyans that enrolled in marketplace health insurance in 2025 qualified for an enhanced premium tax credit; and

Whereas, Nearly half of these enrollees pay $10 or less per month for coverage and many pay $1 or less per month, compared to just 13 percent of enrollees that paid $10 or less per month before the expansion of the tax credits; and

Whereas, The loss of more than $500 million in federal assistance provided to New Jersey through the enhanced premium tax credits would have a devastating impact on individuals and families in the State; and

Whereas, If Congress allows these enhanced premium tax credits to expire, the average cost of health insurance for an individual in the State who previously received an enhanced premium tax credit would increase by $1,260 per year and would be more than twice the cost of the individual’s current premium; and

Whereas, Older New Jerseyans approaching Medicare eligibility would experience some of the highest cost increases and would pay on average $1,860 more each year for coverage; and

Whereas, Many individuals may not be able to afford coverage without the tax credits and could become uninsured with limited access to necessary medical care; and

Whereas, The expiration of enhanced premium tax credits would also put considerable strain on hospitals, health systems, and other health providers, which will face more uncompensated care as a result of a larger uninsured population; and

Whereas, Extending the availability of enhanced premium tax credits is critical to ensuring that health insurance remains affordable and accessible for individuals and families in New Jersey and across the country; now, therefore,

Be It Resolved by the General Assembly of the State of New Jersey:

1. This House respectfully urges Congress to renew the enhanced premium tax credits that are scheduled to expire at the end of 2025.

2. Copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Clerk of the General Assembly to the Majority and Minority Leaders of the United States Senate, the Speaker and Minority Leader of the United States House of Representatives, and every member of Congress elected from this State.

STATEMENT

This resolution urges Congress to renew the enhanced premium tax credits that are scheduled to expire at the end of 2025. Premium tax credits are instrumental in reducing the cost of quality health insurance coverage for over 19 million Americans, including the over half a million New Jerseyans that receive coverage through Get Covered New Jersey.

Enrollment through Get Covered New Jersey has doubled since the State first launched its marketplace as a result of the increased levels of financial assistance available to individuals and families that otherwise would not be able to afford health insurance. Nine in ten New Jerseyans that enrolled in marketplace health insurance in 2025 qualified for an enhanced premium tax credit. Nearly half of these enrollees pay $10 or less per month for coverage and many pay $1 or less per month, compared to just 13 percent of enrollees that paid $10 or less per month before the expansion of the tax credits.

If Congress allows these enhanced premium tax credits to expire, the average cost of health insurance for an individual in the State who previously received an enhanced premium tax credit would increase by $1,260 per year and would be twice as expensive as the individual’s current premium. Older New Jerseyans approaching the Medicare eligibility would experience some of the highest cost increases and would pay on average $1,860 more each year for coverage. Many individuals may not be able to afford coverage without the tax credits and could become uninsured with limited access to necessary medical care. The expiration of enhanced premium tax credits would also put considerable strain on hospitals, health systems, and other health providers, which will face more uncompensated care as a result of a larger uninsured population.

Extending the availability of enhanced premium tax credits is critical to ensuring that health insurance remains affordable and accessible for individuals and families in New Jersey and across the country.