DELAWARE -Gov. Matt Meyer (D) has joined 17 other governors in urging Congress to extend the Affordable Care Act’s enhanced premium tax credits, warning that millions of Americans could face steep hikes in healthcare costs if the program expires at the end of 2025.
According to the governor's office, more than 16,000 Delawareans currently rely on the subsidies to make healthcare affordable. Meyer says about 5,000 of them could lose coverage entirely, and premiums will rise for everyone seeking to renew or purchase a new plan.
Without an extension, analysts predict average premiums could jump by more than 75 percent, with rural regions facing increases of up to 90 percent. Nationwide, as many as four million people could lose coverage, while marketplace enrollment could be cut in half.
“In 45 days, open enrollment for health insurance begins, and millions of Americans are going to find that their premiums have gone up thousands of dollars a year,” Meyer said. “When families have to choose between paying for housing, groceries, or healthcare, our entire economy suffers. Extending these marketplace credits is one of the simplest ways for Congress to bring relief to millions of households already stretched thin, and one of the most effective ways to foster long-term economic growth.
First expanded under the American Rescue Plan and later extended through the Inflation Reduction Act, the enhanced tax credits capped benchmark-plan premiums at no more than 8.5 percent of household income while expanding eligibility beyond the traditional 400 percent federal poverty threshold.
The enhancements drove ACA Marketplace enrollment to historic highs, from about 11.4 million in 2020 to more than 24 million in 2025.