By Hadley Barndollar | HBarndollar@masslive.com
An estimated 337,000 of the state’s 400,000 health insurance marketplace enrollees will soon lose federal subsidies that make their coverage more affordable — if Congress doesn’t take action before Dec. 31.
Ending the federal government shutdown, now the longest on record, hinges on Democrats and Republicans’ opposing positions on Affordable Care Act subsidies — known as enhanced premium tax credits — that are set to expire at the end of the year.
The credits were put in place by the Biden administration in 2021 to make health insurance more affordable during the COVID-19 pandemic.
- Read more: Q&A with the Mass. Health Connector: Federal changes make for ‘complicated’ open enrollment
Washington is at a stalemate as Democrats insist Republicans approve $425 million in ACA tax credit extensions before reopening the government, while Republicans refuse to negotiate until the government is reopened.
Unless the credits are extended, those 337,000 individuals in Massachusetts will see higher health insurance premiums in 2026.
Households earning above $62,600 for an individual, $84,240 for a couple or $128,400 for a family of four will be affected, according to the Massachusetts Health Connector.
But the state’s marketplace also notes that “without (enhanced premium tax credits), health insurance premiums for people who enroll in coverage through the Health Connector at all income levels may increase.”
“We have been in close communication with all of the people we currently cover and making sure that they have clear information about what might be changing and all of the resources that are available to help them navigate those changes,” Audrey Morse Gasteier, Health Connector executive director, told MassLive this week.
The connector has staffed up its call center “exponentially” and bolstered training and support for its navigator program, which provides in-person assistance in dozens of languages to people looking to sign up for health insurance.
The expiring tax credits will cut federal support by about $1,300 per person annually in Massachusetts, Morse Gasteier said. Premium hikes will vary — some people will see their monthly costs double or triple.
“This feels like it would be a real gut punch to working families across the state if this was to be rolled back,” Alex Sheff, senior director of policy and government relations for the advocacy group Health Care for All, told the CommonWealth Beacon in September.
An estimated 22 million out of the 24 million ACA marketplace enrollees nationally are currently receiving a tax credit to lower their monthly premiums.
In the event Congress votes to extend the enhanced tax credits, Morse Gasteier said the Health Connector is ready to deploy contingency plans. That includes updating the majority of premiums, reevaluating consumers’ eligibility and conducting large-scale outreach about the real-time changes.
But any extension remains wholly uncertain.
During a food bank visit in Chicopee Monday, U.S. Rep. Richard E. Neal, D-Springfield, said the Democrats “can’t accept the one-year extension of the Affordable Care Act tax credits because what will happen is we’ll be right back to where we are now in a year after the elections.”
Massachusetts residents who need health insurance coverage for 2026 through the marketplace can visit mahealthconnector.org to complete an application and explore available plans.
For coverage to start on Jan. 1, 2026, enrollment must be completed by Dec. 23. The open enrollment period ends on Jan. 23, 2026.
