Press Release: 9/16/2025

Governor Healey Joins 17 Governors in Urging Congress to Extend Affordable Care Act Enhanced Premium Tax Credits

 

FOR IMMEDIATE RELEASE:

9/15/2025

 

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Karissa Hand, Press Secretary

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Call Karissa Hand, Press Secretary at 617-725-4025

BOSTON — Governor Maura Healey and 17 other Governors today called on Congressional leadership to extend the Affordable Care Act (ACA)’s enhanced premium tax credits, which lower the cost of health care for 336,000 Massachusetts residents.  

In addition to Governor Healey, California Governor Gavin Newsom, Colorado Governor Jared Polis, Connecticut Governor Ned Lamont, Delaware Governor Matt Meyer, Illinois Governor JB Pritzker, Kentucky Governor Andy Beshear, Maryland Governor Wes Moore, Michigan Governor Gretchen Whitmer, Minnesota Governor Tim Walz, New Jersey Governor Phil Murphy, New Mexico Governor Michelle Lujan Grisham, New York Governor Kathy Hochul, North Carolina Governor Josh Stein, Oregon Governor Tina Kotek, Rhode Island Governor Dan McKee, Washington Governor Bob Ferguson, and Wisconsin Governor Tony Evers also signed onto the letter to House Speaker Mike Johnson, House Minority Leader Hakeem Jeffries, Senate Majority Leader John Thune, and Senate Minority Leader Chuck Schumer. 

The Governors emphasized that extending the ACA tax credits, which are set to expire at the end of 2025, is a practical step to make health care more affordable and stable for millions of Americans. If these credits are not extended, people who make just slightly too much income to qualify for state subsidies could lose coverage because their plans would become unaffordable, and small businesses would feel the financial burden quickly. It's estimated that allowing the credits to expire would increase health care premiums for ACA enrollees by 75 percent. 

“Across the country, people are struggling with high health care costs. It's why I’ve worked to lower health care costs in Massachusetts, and why I’m joining Governors across the country urging Congress to do the same,” said Governor Healey. “Millions of people and small businesses rely on the Affordable Care Act’s enhanced tax credits to afford health insurance coverage. Extending them is the right thing to do.” 

“In Massachusetts we prioritize affordable health coverage because we know that it holds greater value than just providing people with an avenue to prioritizing their health,” said Secretary of Health and Human Services Kiame Mahaniah. “Not only will the extension help us keep health care affordable, preventing worse health outcomes for people who may wait too long to get care, but it also keeps premiums lower and puts less strain on health care centers and hospitals. I am grateful to Governor Healey and other leaders in supporting the expansion because it makes sense for residents of our state and across the country.” 

“Massachusetts is the best place in the country to get healthy and stay healthy, and at the Health Connector, we pride ourselves on our work to make sure affordable coverage is in reach for Massachusetts families,” said Audrey Morse Gasteier, the Executive Director of the Massachusetts Health Connector. “Congress extending enhanced tax credits will mean that tens of thousands of Massachusetts residents can continue to afford coverage that allows them to live healthier and more financially secure lives.” 

First expanded under the American Rescue Plan and later extended through the Inflation Reduction Act, the tax credits capped benchmark-plan premiums at a maximum of 8.5 percent of household income and expanded eligibility to individuals and families earning above the traditional 400 percent federal poverty level threshold. These enhancements spurred a historic surge in ACA Marketplace enrollment—from around 11.4 million in 2020 to over 24 million in 2025.  

Without renewed authorization, these tax credits are slated to expire at the end of 2025, setting off a cascade of consequences: average premiums could spike by more than 75 percent, with rural regions seeing hikes as high as 90 percent, for an average increase of $700. Estimates suggest that marketplace enrollment could fall by up to 50 percent, and four million Americans could lose insurance coverage entirely.  

The Governors are joined by leaders in the health care industry, including AARP, Blue Cross Blue Shield Association, Susan G. Komen and American Medical Association, who also submitted a letter urging Congress to extend the tax credit. 

Earlier this year, Governor Healey signed two bills into law that lowered health care costs, capped prescription drug costs at $25, improved access to primary care and increased oversight of the health care industry to protect patients and providers. She also overhauled maternal health practices in Massachusetts and approved $75.6 million in health insurance rebates for consumers and small businesses. This year, the Division of Insurance negotiated down proposed rate increases from health insurers, saving Massachusetts residents and businesses a projected $79 million in health care premiums for 2026.   

To read the letter, led by Delaware Governor Matt Meyer, click here.