Blue Shield of California Teams Up with 25+ Health Organizations to Advocate for Continued Affordable Care Act Tax Credits

The Affordable Care Act (ACA) has greatly increased health coverage for millions of Americans. California stands out as a state that really embraced these changes, moving from high uninsured rates to one of the lowest in the nation.

Recently, Blue Shield of California joined over 25 major health organizations, including the American Medical Association and the American Cancer Society, in sending a letter to Washington, D.C. They urge lawmakers to keep the expanded ACA tax credits beyond 2025, highlighting the serious consequences of letting them expire.

“More than 20 million Americans face a potential cost-of-living crisis,” the letter states. It points out that these tax credits significantly lower monthly insurance premiums for people using the state and federal marketplaces. Without the extension, families could see their health insurance costs skyrocket by hundreds or even thousands of dollars each month.

What’s at Stake in California

In California, the Kaiser Family Foundation estimates around 250,000 people in the ACA marketplace could lose insurance due to recent changes. If the expanded tax credits are not renewed, that number could rise to over 400,000.

This situation reflects broader trends in health insurance. A survey by the Kaiser Family Foundation showed that when faced with increasing premiums, many Americans hesitate to seek necessary care. This leads to poorer health outcomes overall. In 2020, nearly 25% of adults skipped needed medical care due to costs, according to a report by the Commonwealth Fund.

Experts stress that maintaining these tax credits is crucial. Dr. Jack Resneck Jr., president of the American Medical Association, recently stated, “The loss of these credits would not only harm families but also strain our healthcare system, as untreated conditions will lead to higher emergency care costs.”

In today’s climate, as healthcare costs continue to rise, the implications of these tax credits are more important than ever. Retaining them could save lives and reduce long-term healthcare expenditures for everyone.

Read the full letter to Congress here.

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