The National Association of Insurance Commissioners (NAIC) has called on U.S. lawmakers to extend enhanced premium tax credits under the Affordable Care Act, which are set to expire at the end of 2025. This appeal was made in a letter addressed to leaders in both the House and Senate, marking the fourth such communication from NAIC since July 2024.
The NAIC emphasized that health insurers have already submitted their initial rates for 2026. The letter said, “Without an extension of the enhanced credits in September, insurers and marketplaces will begin to notify over 20 million consumers in all 50 states of major premium increases in a matter of weeks.” The officers further warned that not extending these credits would significantly impact the stability and affordability of state health insurance markets. They noted, “The affordability of coverage would change for millions of enrollees, with many paying hundreds more per month. For millions, coverage would no longer be affordable.”
Enhanced premium tax credits have been crucial for individuals earning less than 250% of the federal poverty level by expanding access to healthcare. Without these credits, there could be shrinking risk pools as healthier young adults might opt out due to increased costs. Additionally, funding for state reinsurance programs could decrease, potentially leading to insurer exits from marketplaces.
The NAIC urged Congress to act before insurers finalize rates for the 2026 plan year and ahead of the Open Enrollment Period starting November 1.
More information about this can be found in the full letter provided by NAIC.
Information from this article can be found here.
