Gov Meyer Leads Letter Urging Protections for ACA Premium Enhanced Tax Credits
September 15, 2025/
Delaware Governor Matt Meyer and governors of 17 other states have signed on to a letter to congressional leadership to extend the Affordable Care Act’s enhanced premium tax credits which expire at the end of the year. Gov. Meyer says that over 16,000 Delawareans stand to lose subsidies that keep healthcare affordable – and about 5000 of them will not be able to find a new plan and that rates for everyone will rise for those looking to renew or find a new plan when open enrollment for health insurance begins in October.
Additional information from Gov. Meyer:Â
“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,” said Governor Matt Meyer. “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.”
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The enhanced premium tax credit has been a lifeline for many households – particularly working families, small business owners, older Americans not yet on Medicare, and rural residents who often rely on marketplace plans as their only option for coverage –– making healthcare accessible and affordable at a time when the cost of living continues to rise.
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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% of household income and expanded eligibility to individuals and families earning above the traditional 400% 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.
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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%, with rural regions seeing hikes as high as 90%, for an average increase of $700. Estimates suggest that marketplace enrollment could fall by up to 50%, and four million Americans could lose insurance coverage entirely.