WASHINGTON, D.C. — U.S. Senator Angus King is cosponsoring legislation to help Maine people avoid a dramatic spike in their health care costs. The Health Care Affordability Act would permanently extend the enhanced Premium Tax Credits (PTCs) — tax subsidies that increase the amount of financial assistance available to people buying their own health insurance, which will expire at the end of this year. The enhanced PTCs have protected millions of Americans from higher health care costs, reduced the number of Americans without coverage, provided robust choices for consumers and provided stability for health care providers, particularly in rural areas.

The PTCs were originally created under the Affordable Care Act (ACA), enhanced under the American Rescue Plan and later extended under the Inflation Reduction Act. The extension will expire at the end of 2025, leaving over 20 million Americans facing a sudden increase in their health insurance costs if not extended. It is estimated that 3,000 Maine people would lose insurance, the uninsured rate would increase by 5%, and that the average annual premium increase for Maine people would be $1,030.

“Maine people shouldn’t have to break the bank to ensure themselves and their families can afford quality health insurance,” said Senator King. “The premium tax credits established under the Affordable Care Act helped to lower costs and put health care back in reach for millions across the country. However, without action, these credits are at risk of expiring and leaving thousands of Maine people facing a hike in their monthly expenses. The Health Care Affordability Act will permanently extend these savings to keep costs down and ensure even more people can access the care they need.”

Senator King has consistently worked to reduce healthcare costs for Maine people. The Inflation Reduction Act has laid the groundwork for — and in some cases already implemented — long-term changes in federal policy that will keep people healthier and deliver higher quality care at a lower cost to patients. These benefits are delivered while simultaneously reducing the deficit by finally allowing Medicare to negotiating bulk discounts on the price it pays for prescription drugs; saving the taxpayers hundreds of billions. Senator King recently lauded a key, cost-saving, provision of the Inflation Reduction Act: the $2,000 cap on out-of-pocket expenses for Medicaid recipients.

Additionally, Senator King has worked to reduce prescription drug costs. He has previously introduced legislation to prohibit pharmaceutical drug manufacturers from claiming tax deductions for consumer advertising expenses and also introduced bipartisan legislation to require price transparency in prescription drug advertisements. Previously, he introduced the bipartisan Physician Fee Stabilization Act to protect seniors’ access to healthcare, and also introduced legislation to make mental health and behavioral health care serves more affordable.

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