Budget Negotiations and Health Care in Alabama
As budget talks heat up between Democrats and Republicans, a coalition of over 100 groups advocating for better health care in Alabama is urging Congress to extend the Affordable Care Act (ACA) premium tax credits. These tax credits are crucial for many in the state.
If these credits aren’t extended by the end of this year, millions of Americans will see a sharp increase in their health insurance costs. Debbie Smith, director of the Alabama Campaign for the Alabama Allease, emphasized their importance, noting that without Medicaid expansion, over 400,000 people in Alabama depend on the ACA marketplace for their coverage. “Without these tax credits, families will lose their health insurance,” she warned, highlighting the potential crisis facing the state’s health care system.
Should the Enhanced Premium Tax Credits (EPTC) lapse, around 130,000 Alabamians could lose their coverage, while many others would face significant premium hikes. Rural hospitals, which already struggle with funding, would face additional compensation costs, risking more facility closures and leaving rural communities even more deprived of accessible health care.
Smith also pointed out that these tax credits are vital for small businesses and their employees, many of whom lack access to employer-sponsored insurance. “About half of all adults registered through Healthcare.gov are small business owners, employees, or self-employed,” she said.
In response, Cover Alabama has launched a petition asking Alabama’s legislative delegation to advocate for the inclusion of tax credit extensions in ongoing budget negotiations.
The petition calls on Congress to act quickly, stating, “We urge you to take immediate steps to protect affordable healthcare for families in Alabama by extending the enhanced Premium Tax Credit before it expires at the end of 2025.” It further claims these subsidies are lifelines for many low- and middle-income Alabamians who could struggle to afford health insurance otherwise. If Congress doesn’t take action, Healthcare.gov reports that premiums in Alabama could soar by 93% by 2026, forcing families, small business owners, and seniors to drop valuable coverage.
The petition has garnered over 900 signatures and will remain open until Congress decides to extend the EPTC.
