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Democratic lawmakers are pushing to pass extensions of tax credits, which make health care cheaper for millions of Americans and expire at the end of the year.
As open enrollment approaches, the state’s version of the Affordable Care Act exchange began warning Massachusetts residents about skyrocketing premiums as Congress continues its stalemate over the federal subsidies.
As the federal shutdown continues, Democratic lawmakers are pushing to pass extensions of tax credits, which make health care cheaper for millions of Americans and expire at the end of the year.
Ahead of open enrollment beginning Nov. 1, Massachusetts Health Connector has been sending out final eligibility notices, including premium information for 2026. A spokesperson said the average premium increase is estimated to be more than $1,300 a year if the enhanced Premium Tax Credits are not extended.
“People can start to see those premium increases in their online member portal through the Health Connector, but the actual pieces of mail will likely be hitting people’s mailboxes starting over the next several days, the next week or two,” said Audrey Morse Gasteier, the executive director of Health Connector, per the State House News Service.
In Massachusetts, older people and people who live in rural areas are most likely to be affected by the increase. As examples, multiple self-employed couples between the ages of 57 and 62 making around $85,000 a year could see between $1,687 and up to $3,124 to their monthly premium going to unsubsidized coverage.
The ACA tax credits were first introduced in 2021 and extended through 2025 by the Inflation Reduction Act. Across the country, enrollment in the marketplace has more than doubled, from 11 to 24 million, since the premium tax credits were introduced, according to healthy policy analysis nonprofit KFF.
The tax credits helped more than 300,000 Massachusetts residents afford health insurance through Massachusetts Health Connector, according to fact sheets from the state’s marketplace. Around 26,000 enrollees would no longer receive any subsidies in 2026 if no extension is passed, while others could get less financial help.
Democrats are holding out as the Republicans toy with the idea of extending the federal subsidies to health plans offered under ACA marketplaces. Last week, Senate Majority Leader John Thune offered to hold a later vote on the subsidies but would not “guarantee a result or an outcome.”
“Nobody is coming out ahead as a result of the Republican cuts,” Sen. Elizabeth Warren told The Boston Globe. “The only question is how much higher people’s insurance premiums will be.”
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