Governors Urge Congress to Extend Affordable Care Act Premium Tax Credits

Strategic Insights -

Governor Matt Meyer of Delaware, along with the governors of 17 other states, has signed a letter to congressional leadership urging the extension of the Affordable Care Act's enhanced premium tax credits. The subsidies, set to expire at the end of 2025, have been a lifeline for millions of households, particularly working families, small business owners, and rural residents. Without renewal, average premiums could spike by over 75%, with rural regions seeing hikes as high as 90%, and four million Americans could lose insurance coverage entirely.

Key Takeaways:

  • The enhanced premium tax credit has been a lifeline for millions of households, particularly working families, small business owners, and rural residents, making healthcare accessible and affordable despite the rising cost of living.
  • Without renewed authorization, the tax credits are slated to expire at the end of 2025, setting off a cascade of consequences, including:

+ Average premiums could spike by more than 75%, with rural regions seeing hikes as high as 90%, for an average increase of $700.

+ Marketplace enrollment could fall by up to 50%, and four million Americans could lose insurance coverage entirely.

  • The governors urge congressional leadership to extend the premiums, highlighting that it's a non-partisan issue aimed at protecting working people who are doing everything right but still struggling to get by.
  • Over 18 states have signed on to the letter, including California, Colorado, Connecticut, Illinois, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Washington, and Wisconsin.
  • The governors believe that extending the tax credits is one of the simplest and most effective steps Congress can take to keep healthcare affordable and provide real stability for millions of families.

Statistics:

  • Over 16,000 people in Delaware will lose subsidies that keep healthcare within reach.
  • About 5,000 of those will be unable to find a new plan, and rates will rise for everyone looking to renew their plan or find a new one.
  • The enhanced premium tax credit has spurred a historic surge in ACA Marketplace enrollment--from around 11.4 million in 2020 to over 24 million in 2025.
  • The tax credits capped benchmark-plan premiums at a maximum of 8.5% of household income and expanded eligibility to individuals and families earning above the traditional 400% federal poverty level threshold.

Sources:

  • Press Release from Governor Matt Meyer, issued on Sept. 15, 2025, regarding the letter to congressional leadership to extend the Affordable Care Act's enhanced premium tax credits.
  • The Honorable Mike Johnson, Speaker, U.S. House of Representatives, Washington, D.C. 20515
  • The Honorable John Thune, Majority Leader, U.S. Senate, Washington, D.C. 20510
  • The Honorable Hakeem Jeffries, Minority Leader, U.S. House of Representatives, Washington, D.C. 20515
  • The Honorable Charles Schumer, Minority Leader, U.S. Senate, Washington, D.C. 20510
  • Original text here: https://news.delaware.gov/2025/09/15/governor-matt-meyer-leads-letter-urging-protections-for-aca-premium-enhanced-tax-credits/