Governors Unite to Extend Health Care Tax Credits, Lower Costs for Families

Strategic Insights -

Governors from 18 states, including Colorado, have signed a letter urging congressional leadership to extend the Enhanced Premium Tax Credit (EPTC) before it expires at the end of 2025. The tax credit helps millions of Americans afford health insurance, and its expiration would lead to significant premium increases, pushing millions off coverage and forcing families to choose between healthcare, rent, and groceries.

Key Takeaways:

  • The Enhanced Premium Tax Credit (EPTC) is set to expire at the end of 2025, which would lead to a 300% increase in premiums in some rural counties, affecting over 75,000 Coloradans.
  • The governors are urging congressional leadership to extend the EPTC by September 30 as part of the upcoming continuing resolution funding bill.
  • The letter was led by Delaware Governor Matt Meyer and co-signed by governors from 17 other states, including Colorado, California, Connecticut, Illinois, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Washington, and Wisconsin.
  • Governor Polis has taken preemptive steps to limit the damage of the tax credit failing to pass in Colorado, including passage of HB25B-1006 during the August special legislative session.
  • According to the Colorado Division of Insurance, premiums could rise by more than 300% in some rural counties, pushing more than 75,000 Coloradans off coverage even after state-level actions to blunt the impact.
  • Governor Polis hosted a roundtable discussion in Grand Junction with small business owners, non-profit and chamber leaders, and local elected officials to discuss the impacts on Western Slope businesses and Coloradans who buy health insurance through the Affordable Care Act marketplace.

Statistics:

  • 300% increase in premiums in some rural counties, affecting more than 75,000 Coloradans.
  • 75,000 Coloradans projected to lose coverage even after state-level actions to blunt the impact.
  • Insurers are already setting 2026 rates.
  • 18 states have signed onto the letter urging congressional leadership to extend the EPTC.

Sources:

  • Governor Jared Polis, "Governor Polis Joins Governors' Call to Congress to Extend Health Care Tax Credits and Lower Costs for Families," September 16.
  • Letter to congressional leaders, signed by 18 governors, from Delaware Governor Matt Meyer, State of Delaware Governor Gavin Newsom, State of California Governor Jared Polis, State of Colorado Governor Ned Lamont, State of Connecticut Governor JB Pritzker, State of Illinois Governor Andy Beshear, State of Kentucky Governor Wes Moore, State of Maryland Governor Maura Healey, State of Massachusetts Governor Gretchen Whitmer, State of Michigan Governor Tim Walz, State of Minnesota Governor Phil Murphy, State of New Jersey Governor Michelle Lujan Grisham, State of New Mexico Governor Kathy Hochul, State of New York Governor Josh Stein, State of North Carolina Governor Tina Kotek, State of Oregon Governor Dan McKee, State of Rhode Island Governor Bob Ferguson, State of Washington Governor Tony Evers, State of Wisconsin