Governor Matt Meyer Leads Letter Urging Protections for ACA Premium Enhanced Tax Credits

18 states signed on to the letter to congressional leadership

WILMINGTON - Today, Governor Matt Meyer and the governors of 17 other states signed on to a letter to congressional leadership in Washington to extend the Affordable Care Act's enhanced premium tax credits, which are set to expire at the end of 2025.

Without these subsidies, millions of Americans will see their healthcare premiums rise by thousands of dollars, forcing many to pay more in the private market or lose coverage altogether. In Delaware, more than 16,000 people will lose subsidies that keep healthcare within reach. About 5,000 of those will be unable to find a new plan, and rates will rise for everyone looking to renew their plan or find a new one.

Read the full letter HERE.

"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."

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.

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.

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.

For any questions or to schedule a one-on-one interview with Governor Meyer, please email [email protected].