The Travel Technology Association

Share Your Views with Congress on Maintaining Health Care Tax Credits

The Affordable Care Act’s enhanced Premium Tax Credits (ePTCs) lower marketplace premiums for millions, including many startup founders and their employees on modest salaries. These enhancements expire after 2025 unless Congress acts, leading to substantial premium increases in 2026 for many enrollees. 

The Affordable Care Act’s enhanced Premium Tax Credits (ePTCs) lower marketplace premiums for all qualified Americans including start-up founders and their employees. These are particularly important for innovators who are taking risks, building companies on modest salaries, and reinvesting your hard-earned dollars into growth rather than expensive health plans.  

These enhancements expire after 2025 unless Congress acts, which would trigger substantial premium increases in 2026. To help start-up founders and employees make their voices heard, Travel Tech is providing this action center on the ePTCs.  

Background 

Enhanced Premium Tax Credits (ePTCs) are federal subsidies that make health insurance on the individual market more affordable for all Americans, including start-up founders and their employees. They were first established during COVID, but they’re set to expire on January 1, 2026.  

When they end, the subsidies will drop back to the old (pre-COVID) levels. That means much higher monthly premiums for anyone buying their own plan. 

Analyses show that if enhanced subsidies lapse after 2025, subsidized enrollees’ out-of-pocket premium costs would rise sharply. Estimates predict increases of 50% or more for many households.  

Start-up founders and early employees are especially vulnerable because they often rely on the individual market for coverage, unlike workers at larger companies with employer health plans. 

For start-ups, these tax credits expiring would mean: 

  • Higher out-of-pocket costs for founders and employees. 
  • Less money left for hiring and product development. 
  • A harder time competing with larger employers offering health plans. 

Members of Congress are currently negotiating on whether to extend these ePTCs.  

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