Governors Urge Congress to Extend Affordable Care Act's Enhanced Tax Credits

Strategic Insights -

Governor Maura Healey of Massachusetts, along with 17 other Governors, has called on Congressional leadership to extend the Affordable Care Act's (ACA) enhanced premium tax credits, which lower the cost of health care for 336,000 Massachusetts residents. The Governors emphasized that extending the ACA tax credits is a practical step to make health care more affordable and stable for millions of Americans. If these credits are not extended, people who make just slightly too much income to qualify for state subsidies could lose coverage because their plans would become unaffordable, and small businesses would feel the financial burden quickly.

Key Takeaways:

  • 18 Governors, including Massachusetts Governor Maura Healey, have signed a letter to Congressional leadership to extend the ACA's enhanced premium tax credits.
  • The enhanced tax credits lower the cost of health care for 336,000 Massachusetts residents.
  • If the credits are not extended, people who make just slightly too much income to qualify for state subsidies could lose coverage, and small businesses would feel the financial burden.
  • It's estimated that allowing the credits to expire would increase health care premiums for ACA enrollees by 75 percent.
  • The Governors emphasized that extending the ACA tax credits will make health care more affordable and stable for millions of Americans.
  • The credits have spurred a historic surge in ACA Marketplace enrollment, from around 11.4 million in 2020 to over 24 million in 2025.
  • Without renewed authorization, the tax credits are slated to expire at the end of 2025, setting off a cascade of consequences, including average premiums spiking by more than 75 percent.
  • Marketplace enrollment could fall by up to 50 percent, and four million Americans could lose insurance coverage entirely.
  • The Governors are joined by leaders in the health care industry, including AARP, Blue Cross Blue Shield Association, Susan G. Komen, and American Medical Association, who also submitted a letter urging Congress to extend the tax credit.
  • Governor Healey has taken steps to lower health care costs in Massachusetts, including signing two bills into law that capped prescription drug costs and improved access to primary care.
  • The Division of Insurance negotiated down proposed rate increases from health insurers, saving Massachusetts residents and businesses a projected $79 million in health care premiums for 2026.

Statistics:

  • 336,000 Massachusetts residents benefit from the Affordable Care Act's enhanced premium tax credits.
  • The enhanced tax credits are set to expire at the end of 2025.
  • It's estimated that allowing the credits to expire would increase health care premiums for ACA enrollees by 75 percent.
  • Average premiums could spike by as much as 90 percent in rural regions, with an average increase of $700.
  • Marketplace enrollment could fall by up to 50 percent, and four million Americans could lose insurance coverage entirely.
  • The Division of Insurance negotiated down proposed rate increases from health insurers, saving Massachusetts residents and businesses a projected $79 million in health care premiums for 2026.

Sources:

  • Office of the Governor of Massachusetts
  • Governor Maura Healey
  • Secretary of Health and Human Services Kiame Mahaniah
  • Audrey Morse Gasteier, Executive Director of the Massachusetts Health Connector
  • AARP
  • Blue Cross Blue Shield Association
  • Susan G. Komen
  • American Medical Association
  • Division of Insurance, Massachusetts
  • American Rescue Plan
  • Inflation Reduction Act