Underwood Introduces Legislation to Permanently Lower Health Care Costs
WASHINGTON – Today, ahead of the 13th anniversary of the Affordable Care Act, Representative Lauren Underwood (IL-14) is reintroducing the Health Care Affordability Act, her signature legislation to permanently lower the cost of health care premiums.
A short-term version of the Health Care Affordability Act was included in the Inflation Reduction Act, saving families of four an average of $2,400 on their annual premiums for Marketplace plans. But this provision is set to expire in 2025, leaving millions of Americans facing costly premium increases for their health coverage. The Health Care Affordability Act would make these savings permanent.
The enhanced premium tax credits from Underwood’s legislation have led to historic health care cost savings. More than 16.3 million people — including more than 340,000 Illinoisans — signed up for Marketplace coverage during the 2022-2023 Open Enrollment period, the highest enrollment number ever.
“Because of my Health Care Affordability Act, we are seeing a historic expansion in coverage,” said Underwood. “This legislation has put quality, affordable health care within reach for millions of people, some of them for the very first time. Now Congress must build on the historic progress we’ve made in expanding coverage, affordability, and equity by making these changes permanent.”
As a registered nurse, Underwood came to Congress to expand access to high-quality, affordable health care for every American. The Health Care Affordability Act lowers health care premiums by making advance premium tax credits for Marketplace plans more generous and available to more Americans, ensuring that no American pays more than 8.5% of their household income on premiums — and most pay far less.
Because this legislation was included in the American Rescue Plan Act and the Inflation Reduction Act:
A family of four can save an average of $2,400 per year on health care premium costs.
Four out of five customers can find a plan for $10 or less per month after tax credits.
The United States has seen historic gains in health equity, with enrollment increasing by 49% for Black consumers, 53% for Hispanic consumers, 32% for American Indian and Alaska Native consumers, and 6% for Asian American, Native Hawaiian, and Pacific Island consumers.
A record-breaking number of Americans have enrolled in coverage — with HealthCare.gov sign-ups increasing by nearly 50% from January 2021-January 2023.
The Health Care Affordability Act is endorsed by 15 organizations. Statements in support can be found here:
UnidosUS: “During the pandemic Congress put market-place health insurance coverage within reach for millions of Latino working families who could not afford it. The critical supports that made this happen are temporary and when they expire could take health care away from working families. The Health Care Affordability Act will make the boost in premium tax credits permanent, help keep insurance coverage affordable, and protect families’ health and wellbeing.” - Eric Rodriguez, Senior Vice President, Policy and Advocacy, UnidosUS
Protect Our Care: “From day one, Representative Underwood has been a champion for lowering health care costs, and her legislation to make premiums more affordable for people who purchase coverage on their own has led to a record number of Americans having affordable care. By making more affordable premiums a permanent feature of our health system, the Health Care Affordability Act of 2023 will ensure that these coverage gains are protected and that millions of families can continue to afford the health care they need without sacrificing other basic needs like gas, child care, and rent. This policy especially helps people of color, rural Americans, older adults, and other groups who have historically struggled to access quality coverage. It’s clear lowering health care premiums works, and now is the time for Congress to pass this bill to help people get the life-saving care they need.” - Leslie Dach, chair of Protect Our Care
Families USA: “Families USA is proud to endorse the Health Care Affordability Act. This critical legislation will build on the success of the American Rescue Plan Act and the Inflation Reduction Act by making the enhanced premium tax credits permanent. Enacting this bill would be a significant step toward protecting families and realizing the full promise of the Affordable Care Act: to provide affordable health coverage for every person in America." - Jen Taylor, Senior Director of Federal Relations, Families USA
First Focus Campaign for Children: “We are pleased to support Congresswoman Underwood’s legislation which would allow millions of families to continue to have access to affordable, quality health care coverage by making permanent the enhanced premium tax credits established in the American Rescue Plan. Helping families save money on health care premiums is a direct investment in our children so they can grow up strong and healthy. Our children deserve nothing less.” - Bruce Lesley, President, First Focus Campaign for Children
American College of Physicians: “The Health Care Affordability Act of 2023 is a critical piece of legislation that would permanently expand eligibility for higher premium tax credits for market-based insurance under the Affordable Care Act. As an internal medicine physician, I understand first- hand how higher premiums can negatively impact access to affordable care and coverage for patients. ACP strongly supports this to ensure that patients are not negatively affected by additional health care costs, that can lead to poor health outcomes.” - Ryan D. Mire, MD, MACP President, American College of Physicians
Small Business Majority: “Making healthcare more affordable is critical to small businesses and the business ecosystem,” said John Arensmeyer, Founder & CEO, Small Business Majority. “Because of the Affordable Care Act (ACA), many more small business owners, their employees and the self-employed can afford health coverage despite the challenges created by the pandemic. The key provisions in the Inflation Reduction Act that increase the ACA’s premium tax credits through 2025 were a welcomed measure. This is why we are happy to support Congresswoman Underwood’s introduction of the ‘Health Care Affordability Act of 2023.' Making these subsidies permanent will ensure that the millions of sole proprietors, small business owners and their employees who count on them can continue to access low premiums and affordable healthcare coverage.” - John Arensmeyer, Founder & CEO, Small Business Majority
Asian & Pacific Islander American Health Forum (APIAHF): “Under the American Rescue Plan and the Inflation Reduction Act, Asian American, Native Hawaiian, and Pacific Islander families were able to benefit from lower out-of-pocket health care premiums through 2025 via premium tax credits. We applaud Congresswoman Underwood’s continued advocacy to make these critical tax credits a permanent solution. As hard-working families continue to navigate the complex landscape to access affordable health insurance, legislation like this remains critical to making reducing the health care coverage gap.” - Juliet K. Choi, President & CEO, Asian & Pacific Islander American Health Forum (APIAHF)
United States of Care: “Thanks to the American Rescue Plan Act’s enhanced advance premium tax credits, millions of Americans have enjoyed more affordable health care through the ACA marketplace. Now, the Health Care Affordability Act will make these valuable subsidies permanent, ensuring families across the nation can continue to rely on accessible and budget-friendly health care. At United States of Care, our mission is to create a health care system that truly serves people by promoting policies that make care more affordable, dependable, personalized, and easy to understand. We urge Congress to pass Rep. Underwood's Health Care Affordability Act, and make this vital cost-saving measure a lasting reality.” - Natalie Davis, CEO and Co-Founder of United States of Care
Young Invincibles: "We are excited to see the fight for health care affordability and access continue in Congress through the Health Care Affordability Act introduced by Rep. Lauren Underwood. Over the last couple of years, enrollment figures have hit record levels as the benefits from the American Rescue Plan Act and the Inflation Reduction Act made themselves felt among the communities with the lowest enrollment rates like young adults. Extending the ACA premium subsidies will ensure we cement these gains and expand access to even more Americans." - Martha Sanchez, Health Care Policy Director, Young Invincibles
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