The cost of marketplace health insurance could increase unless Congress renews this tax exemption.

• Your premiums for health insurance purchased through the federal marketplace may increase significantly after 2025 unless Congress intervenes.
• During the Covid-19 pandemic, the premium tax credit temporarily enhanced the benefits of lowering upfront marketplace health insurance premiums.
• The end of the expansion will affect everyone, according to Andrew Lautz, associate director for the Bipartisan Policy Center's economic policy program.

Your premiums for health insurance purchased through the federal marketplace may increase significantly after 2025 unless Congress intervenes.

The premium tax credit reduces the cost of health insurance purchased through the marketplace by allowing participants to either lower their premiums upfront or claim a tax break when filing their return.

The American Rescue Plan Act temporarily enhanced credit coverage during the COVID-19 pandemic, covering plans in 2021 and 2022. However, the Inflation Reduction Act extended that benefit through 2025.

According to Gideon Lukens, senior fellow and director of research and data analysis for the Center on Budget and Policy Priorities, if the benefits of sunset after 2025, "virtually everybody would face higher premiums."

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In January, the White House reported a record-high enrollment of over 21 million participants in marketplace plans for 2024.

During the first presidential debate on Thursday, President Joe Biden highlighted the benefits of the premium tax credit expansion program for communities of color in his fiscal year 2025 budget request.

The federal budget deficit would be increased by $335 billion from 2025 to 2034 if the program is made permanent, according to the Congressional Budget Office and Joint Committee on Taxation.

CNBC did not receive a response from former President Donald Trump's campaign regarding their program.

Tax break expiration will impact 'just about everyone'

According to the Center on Budget and Policy Priorities, if Congress does not extend subsidies, health insurers will increase premiums for Americans across all income levels, with the impact being seen in mid-2025 when rates are released.

A family of four earning $60,000 would see their monthly premiums increase from $100 to $326, or about $2,700 more annually. On the other hand, a family of four earning $125,000 would see their monthly premiums rise from $885 to $1,525, which adds about $7,700 annually.

The end of the expansion will affect everyone, according to Andrew Lautz, associate director for the Bipartisan Policy Center's economic policy program.

The Urban Institute reports that the tax credit has reduced costs for all enrollees, including those ineligible for the tax break, due to "additional enrollment improving the nongroup market risk pool."

The American Rescue Plan Act removed income limits and capped premiums at 8.5% of income for the credit until 2021.

The premium tax credit is calculated by subtracting the benchmark premium, which is the cost of the second-lowest-cost silver plan in an area, from a maximum contribution based on a percentage of income. The tax credit is adjusted over time.