The Resolution

The Alaska Senate has formally requested congressional action to extend enhanced Affordable Care Act (ACA) premium tax credits.On Monday, May 12, the Senate passed House joint Resolution No. 9 (HJR 9), which implores Congress to continue these credits that help thousands of Alaskans afford health insurance. Representative Genevieve Mina introduced the resolution, which will now be submitted to Alaska’s congressional delegation.

The Stakes

Without congressional action, these enhanced tax credits are set to expire at the end of 2025. These credits,initially expanded under the American Rescue Plan Act and later extended by the Inflation Reduction Act,cap premiums based on income,thereby expanding eligibility to more working families and small businesses.

Senator Forrest Dunbar, speaking on the Senate floor, emphasized the urgency of the situation:

Without these enhanced tax credits, health care costs could multiply six or seven times for Alaskan families. Middle-class Alaskans who don’t qualify for conventional subsidies are already paying some of the highest premiums in the nation. Letting these credits expire would destabilize our insurance market, increase medicaid costs to the state, and put health coverage out of reach for thousands.
Senator Forrest Dunbar

Potential impact

• ACA marketplace premiums in Alaska could rise by an average of 63 percent, according to the Urban Institute.
• Alaskans could lose more than $287 million in annual tax relief.
• The uninsured rate could increase.
• Uncompensated care could rise, putting additional strain on the state Medicaid program.

A Call to Action

Representative Mina underscored the importance of the resolution during House debate:

This resolution is about protecting working families and entrepreneurs with no additional cost to the state. Failure to act will push many Alaskans out of the marketplace altogether,especially in our rural and underserved communities.
Representative Genevieve Mina

The resolution also highlights risks to Alaska’s innovative reinsurance program, which relies on stable premium levels to function effectively.Senator Dunbar noted that over 80 percent of marketplace enrollees in Alaska qualify for premium subsidies, making continuation of these credits essential to maintaining access to affordable coverage.

HJR 9 now goes to Alaska’s federal delegation with a bipartisan mandate: act swiftly to extend or make permanent these vital tax credits and protect affordable health care for Alaskans.

FAQ: Affordable Care act Tax Credits in Alaska

What are ACA premium tax credits?

These credits help lower the monthly premiums for health insurance purchased through the Health Insurance Marketplace.

Who is eligible for these tax credits?

Eligibility depends on income and household size. The credits are designed to help working families and small businesses afford health insurance.

How do I enroll to receive tax credits?

You must enroll at Healthcare.gov to get this tax credit [[3]].

What happens if Congress does not extend the tax credits?

Premiums could rise considerably, perhaps making health insurance unaffordable for many Alaskans. The State House is asking Congress to prevent this major health insurance cost hike [[2]].

How much financial assistance is available?

As of early 2024, the average monthly savings for enrollees receiving premium tax credits in Alaska reached $732 [[1]].