In a unified move to make healthcare more accessible and affordable, Governor Maura Healey and 17 other governors are pushing for the extension of the Affordable Care Act's (ACA) enhanced premium tax credits. These tax credits play a vital role in subsidizing health care costs for approximately 336,000 residents in Massachusetts alone. The coalition of governors, which also includes leaders from states like California, New York, and Washington, has collectively reached out to the pillars of Congress, addressing leaders such as House Speaker Mike Johnson and Senate Majority Leader John Thune in a letter, urging them to act before the credits expire at year’s end, 2025.
"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," Governor Healey articulated, as reported by the Massachusetts government news page. Without these credits the burden on individuals and small businesses would amplify significantly, potentially escalating average healthcare premiums by a staggering 75 percent, a financial shockwave that is seen as untenable by advocates of the tax credits extension.
The ACA tax credits, originally expanded under the American Rescue Plan and subsequently extended through the Inflation Reduction Act, have been pivotal in keeping health care costs within reach. Capping benchmark-plan premiums at a maximum of 8.5 percent of household income, these enhancements have led to a historic leap in ACA Marketplace enrollment—from around 11.4 million in 2020 to over 24 million in 2025. According to studies cited by the governors, the situation looks grim if the credits expire: average premiums could potentially jump, rural areas could face hikes as severe as 90 percent, leading to an estimated overall enrollment drop by up to 50 percent.
Support for the governors' call is broad and includes major players in the health care industry such as AARP, the Blue Cross Blue Shield Association, Susan G. Komen, and the American Medical Association, all of whom have submitted a letter to Congress emphasizing the urgency of the extension. Locally, Governor Healey has demonstrated a commitment to healthcare affordability by introducing measures to cap prescription drug costs and increase health industry oversight. Audrey Morse Gasteier, Executive Director of the Massachusetts Health Connector, emphasized that Massachusetts is the best place in the country to get healthy and stay healthy, noting the agency’s pride in ensuring affordable coverage is within reach for families. Earlier this fiscal year, the state saw significant savings for residents and businesses after the Division of Insurance negotiated down proposed rate increases—a proactive stance that mirrors the ethos behind the plea to Congress.
The governors' collective voice is a potent reminder that health care, an issue ever so complex and widespread, summons a bipartisan effort to fortify the American public against the fiscal barriers that impede access to necessary medical care. As the year's end approaches, the ripple effect of their advocacy might just be the lever that sets policy change into motion. The full letter led by Delaware Governor Matt Meyer can be read by clicking here.
