How the Congressional Republican Plan Could Impact Health Insurance Costs for Mainers: What You Need to Know

Congressional Republicans are advocating for tax cuts aimed at wealthy Americans. To fund these cuts, they propose allowing health insurance subsidies to expire. If Congress doesn’t intervene, many Mainers could see their health insurance costs soar in 2025.

More than 63,000 individuals in Maine depend on the Affordable Care Act marketplace, CoverME, for their health coverage. Most of them receive financial assistance through Advance Premium Tax Credits, which help keep the insurance premiums manageable based on their income.

The American Rescue Plan improved these tax credits and made them available to higher-income families. This support was extended through 2025 under the Inflation Reduction Act. However, if Congress allows these credits to end, many families could face much higher monthly premiums for their health insurance.

Currently, about 85% of marketplace users in Maine benefit from the tax credits, collectively saving around $350 million. If those subsidies vanish, many Mainers will lose crucial financial help and face steep increases in their insurance costs.

The actual financial impact will depend on various factors like household size, income level, and age. For instance, a couple aged 62 in Washington County with an income of $85,000 currently pays $608 a month for health insurance. With the subsidies gone, their costs could balloon to nearly $32,000 per year, which is far too high for most families to handle.

If subsidies are cut, many may be compelled to drop their coverage. The Congressional Budget Office warns that this could drive up premiums for those who remain insured and push more people into being uninsured, destabilizing the individual insurance market in Maine.

With financial struggles ahead for countless Mainers, Congress should focus on extending the enhanced tax credits instead of prioritizing tax breaks for the wealthy. Letting these subsidies expire could make healthcare unaffordable for many and weaken Maine’s economy.