BALTIMORE — Thousands of Maryland families who rely on the Affordable Care Act marketplace for healthcare coverage could see premium increases if federal tax credits expire at the end of 2025.
The enhanced subsidies, which began in 2021, have allowed the lowest income earners to access coverage for as little as $1 per month. Without congressional action, these families could lose their affordable healthcare options entirely.
"They are very important for these folks to keep them on the healthcare they need. They're set to expire at the end of this year. We are hoping that Congress will continue them," Vincent DeMarco of Maryland Health Care for All said.
The tax credits benefit people who earn 400% of the federal poverty level or less. Katherine Hempstead, senior policy officer at the Robert Wood Johnson Foundation, warns the impact will be severe if the credits aren't extended.
"So for many people, they're going to find their coverage that formerly was affordable is now unaffordable, and that's why the Congressional Budget Office is projecting a large increase in uninsurance, four million nationwide as a result of this failure to extend these tax credits," Hempstead said.
The credits also expanded benefits to people with slightly higher incomes, who could also lose coverage. Hempstead expects widespread premium increases.
"I guess my answer is it's going to be experienced by everybody, but I might particularly single out older enrollees and also people that had a little bit of a higher income are going to see a really dramatic change. But you know, we are looking at 75% to 100% increase for most consumers," Hempstead said.
Maryland enrollees may face less severe impacts than residents of other states. A law passed in 2025 will provide some relief for next year if federal credits don't continue.
"We know that if the federal subsidies end, Maryland has a backup plan that will help many people in 2026. The best thing people can do if they're listening to this is at open enrollment time check what your income level will get you either in federal subsidies or state subsidies, and you'll know what you can afford," DeMarco said.
Congress is currently working to pass a continuing resolution to keep the government funded. The healthcare tax credits could potentially be extended as part of that legislation.
"This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy."
