Gov. Beshear Calls on Congress To Extend Tax Credits To Protect Affordable Health Coverage for Kentuckians

If the credit is allowed to expire, Kentuckians who rely on individual and small group health insurance plans could see rates go up dramatically in January

FRANKFORT, Ky. (Sept. 26, 2025) - With the expiration of the Affordable Care Act's enhanced premium tax credits approaching at the end of this year, Gov. Andy Beshear is again calling on Congress to act to ensure this critical support remains for Kentuckians who depend on it for affordable health care coverage. Gov. Beshear and 17 other governors from across the U.S. sent a letter earlier this month urging Congressional leaders to extend the credit

"Rising costs for everyday needs are hurting Kentuckians, and I am committed to raising my voice and taking action to help," said Gov. Beshear. "I believe health care is a basic human right, and we should expand access, not make it more difficult to afford. Between the 'big, ugly bill' taking aim at our health-care system and the threat of these credits expiring, quality health care is going to be out of reach for most families - and that's just wrong. It's time for Congress to act by prioritizing people over politics and extending these essential tax credits."

Insurance rate filings for 2026 are now available for individual and small group health insurance plans, including kynect. About 97,000 Kentuckians who have purchased an insurance plan on the individual market, including kynect, will be impacted by the increased rates. These numbers could grow if Kentuckians lose Medicaid eligibility and move to the individual market.

The filings show that Kentuckians with these plans can expect their health insurance rates to increase dramatically in January.

Insurance companies must submit rates annually to the Department of Insurance. The Department conducts an actuarial analysis to ensure the rates are not excessive, unfairly discriminatory and necessary for the company to have funds available to pay claims. The average rate increase across all states is 20% in the Affordable Care Act marketplace, according to a Peterson KFF nationwide analysis.

In addition to federal policy changes, many insurers cited rising prices for hospital stays, and doctor's visits. They also noted general inflationary pressures, labor costs and specialty prescriptions as factors in the increased rates.

A majority of kynect enrollees also receive the income-based enhanced premium tax credit. These tax credits are set to expire at the end of 2025 and were not extended in the federal budget bill. The combination of increased rates and the end of the tax credit will spike out-of-pocket costs up to 75% for Affordable Care Act plans such as those on kynect according to Peterson KFF.