Massachusetts residents are facing a sharp rise in health care premiums as federal aid that kept coverage costs down is set to expire, just as open enrollment for the state’s health insurance marketplace begins this Saturday.
Thousands Could Lose Affordable Coverage
Nearly 300,000 Bay Staters may see their insurance costs surge next year, according to the Massachusetts Health Connector, which warned that the hikes could force tens of thousands to drop coverage entirely.
Currently, more than 97% of residents in the state are insured — the highest rate in the nation. But officials fear that number could fall if the subsidies end.
Premiums Could Jump Over $1,300 a Year
Connector officials estimate that average annual increases could exceed $1,300 based on projected 2026 rates. The marketplace has already begun sending out final eligibility notices showing significant spikes in premiums for next year.
Without congressional action to extend the enhanced Affordable Care Act (ACA) tax credits, out-of-pocket costs for premium payers could rise even more, depending on income and location.
Impact on Middle-Class Families
The cuts could hit middle-income earners hardest.
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Self-employed couples aged 57–62 earning about $85,000 could see their monthly premiums increase by $1,687 to $3,124 for unsubsidized plans.
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A family of four making $128,600–$160,750 could lose access to subsidized plans altogether, causing their premiums to jump from $274 to more than $1,100 per month.
“This feels like a real gut punch to working families across the state if this is rolled back,” said Alex Sheff, senior director at Health Care for All.
Political Stalemate Over Subsidies
The Affordable Care Act tax credits — a key point of contention in the ongoing government shutdown — are at the center of the crisis.
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Democrats want to tie the extension of subsidies to budget talks to reopen the government.
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Republicans insist they won’t approve it without their own funding conditions.
If the stalemate continues, Massachusetts could lose $425 million in federal support, leaving 25,000 people without any tax credit and pushing state lawmakers to find new funding sources to keep ConnectorCare plans affordable.
What’s Next
All eyes are on how long the shutdown and partisan gridlock will last — and whether state leaders will step in to fill the funding gap with state taxpayer dollars if federal subsidies disappear.
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