An estimated 337,000 people in Massachusetts could lose crucial federal subsidies for their health insurance soon. This change is tied to ongoing discussions in Congress, where Democrats and Republicans are at odds over extending these subsidies before the December 31 deadline.
These subsidies, known as enhanced premium tax credits, were introduced in 2021 during the COVID-19 pandemic to help people manage their health insurance costs. If Congress doesn’t act, those 337,000 might face significantly higher premiums next year.
Currently, the state is in a stalemate. Democrats want the extension of $425 million in tax credits before agreeing to re-open the government, while Republicans are unwilling to discuss any changes until the government is functioning again.
If the credits expire, people earning above a certain threshold will feel the impact. For example, individuals making over $62,600 or families of four earning over $128,400 will be affected. In fact, without these credits, premiums for all income levels could rise significantly.
“We’re informing our current enrollees about potential changes and the resources available for them,” said Audrey Morse Gasteier, executive director of the Massachusetts Health Connector. They’ve expanded their support staff and resources to help people navigate this uncertainty.
Recent estimates suggest that failing to extend the tax credits could lead to an annual loss of about $1,300 per person in federal support. Some individuals may see their monthly costs double or even triple. Alex Sheff from Health Care for All described this situation as a significant burden on working families, calling it a “gut punch.”
This issue isn’t isolated to Massachusetts; about 22 million of the 24 million enrolled in the Affordable Care Act marketplace across the country receive these vital tax credits.
If Congress decides to extend the tax credits, the Health Connector is ready to adjust premiums and outreach efforts quickly. “We have plans in place to update our systems if changes happen,” said Morse Gasteier. But, as of now, it’s uncertain whether any extension will occur.
In a local food bank visit, U.S. Rep. Richard E. Neal stressed that a one-year extension wouldn’t solve the issue sustainably. He emphasized the need for a long-term solution, suggesting the current debates may not lead to lasting change.
As the open enrollment period approaches, Massachusetts residents seeking health insurance for 2026 can visit the Massachusetts Health Connector for more information. The enrollment window closes on January 23, 2026, but to have coverage starting January 1, 2026, individuals must enroll by December 23, 2025.
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