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Congressional Republicans are pushing for tax cuts for the wealthiest Americans — and they plan to pay for them by letting health insurance subsidies expire. If Congress doesn’t act, tens of thousands of Mainers will see their health insurance costs skyrocket in 2025.
What’s at stake
Over 63,000 Mainers rely on the Affordable Care Act marketplace CoverME for coverage, and the vast majority receive financial help through Advance Premium Tax Credits. These subsidies make insurance affordable by capping premiums based on income.
The American Rescue Plan increased Advance Premium Tax Credits — income-based subsidies awarded to people who purchase health insurance through the online marketplace to reduce the cost of monthly premiums — and extended eligibility to higher-income earners. This expansion was later extended through 2025 under the Inflation Reduction Act. However, Republicans in Congress plan to let these enhanced subsidies expire, forcing families to pay significantly more for coverage.
The cost to Mainers
In 2024, 85% of marketplace users in Maine received the tax credits, saving a total of $350 million. If subsidies expire, premiums will spike dramatically as Mainers lose tens of millions in assistance.
The precise impacts will depend on household size, income level, age, and location within the state. Here’s how it could impact example individuals and families in Cumberland County:
The biggest impact from expiration of the subsidies would be felt by middle-income, older Mainers and those in rural areas. For example, a 62-year-old couple in Washington County earning $85,000 a year currently pays $608 a month for insurance. Without enhanced subsidies, they would pay nearly $32,000 per year — an unaffordable cost for most families.
The ripple effect
If subsidies expire, many Mainers will be forced to drop coverage altogether. The Congressional Budget Office predicts this would drive up premiums for remaining policyholders and cause more people to be completely uninsured, destabilizing the individual insurance market.
With financial hardship looming for thousands of Mainers, Congress should extend the enhanced tax credits and prioritize affordable health care over tax cuts for the wealthy. Allowing them to expire would put health care out of reach for many and weaken Maine’s economy.
This column was originally published at the Maine Center for Economic Policy blog.
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