Gov. Meyer Supports Extension of ACA Premium Tax Credits
TL/DR –
Governor Matt Meyer has joined 17 other governors to urge Congress to extend the Affordable Care Act’s enhanced premium tax credits. If the program ends in 2025, millions of Americans could face increased healthcare costs; with over 16,000 Delawareans currently relying on the subsidies for affordable healthcare, around 5,000 could lose their coverage and others would face rising premiums. Without an extension, average premiums could increase by over 75% and as many as four million people nationwide could lose coverage.
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DELAWARE Governor Advocates for Extension of ACA Enhanced Premium Tax Credits
Delaware’s Governor, Matt Meyer (D), has joined forces with 17 other state leaders to push for Congress to prolong the Affordable Care Act’s (ACA) enhanced premium tax credits. The group is sounding the alarm on the potential for a healthcare cost surge for millions of Americans if the program expires as currently scheduled at the end of 2025.
Impact on Delaware Residents
As per the governor’s office, over 16,000 people in Delaware are dependent on these subsidies to make healthcare affordable. Governor Meyer has expressed concern that without these credits, about 5,000 Delawareans could lose their health coverage altogether. Additionally, premiums are likely to increase for everyone else looking to renew or acquire a new healthcare plan.
National Repercussions
If the tax credits aren’t extended, expert predictions indicate that average premiums could see an increase of more than 75 percent. The increase could even reach up to 90 percent in rural areas. On a national level, coverage loss could affect as many as four million people, and marketplace enrollment could potentially halve.
Urgent Appeal
In a statement, Meyer emphasized the looming issue: “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. 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.”
Background of the Tax Credits
The enhanced tax credits were initially expanded under the American Rescue Plan and later prolonged through the Inflation Reduction Act. These enhancements put a cap on benchmark-plan premiums at a maximum of 8.5 percent of household income and expanded eligibility beyond the conventional 400 percent federal poverty threshold.
Rise in ACA Marketplace Enrollment
Due to these enhancements, ACA Marketplace enrollment reached historical peaks, growing from about 11.4 million in 2020 to over 24 million in 2025.
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