Massachusetts Prepares for Rising Health Insurance Premiums in 2026
As the open enrollment period for health insurance approaches, Massachusetts residents are facing significant increases in premiums for 2026. The state’s health insurance marketplace, known as the Massachusetts Health Connector, has begun issuing warnings about potential hikes that could average more than $1,300 annually if federal tax credits are not extended. These tax credits, which make health care more affordable for millions, are set to expire at the end of the year due to ongoing legislative gridlock in Congress.
Open enrollment begins on November 1, 2023, and the Health Connector has started to send out final eligibility notices that include premium information for the upcoming year. According to Audrey Morse Gasteier, the executive director of the Health Connector, enrollees can already see potential premium increases in their online member portals. Physical notices are expected to arrive in mailboxes within the next week or two.
The potential premium increases are particularly concerning for older residents and those living in rural areas. For instance, self-employed couples aged 57 to 62 earning around $85,000 annually may see their monthly premiums rise significantly, with increases ranging from $1,687 to $3,124 for unsubsidized coverage.
The ACA tax credits were initially introduced in 2021 and extended through 2025 by the Inflation Reduction Act. Since these tax credits were implemented, enrollment in the health insurance marketplace has more than doubled, jumping from 11 million to 24 million nationwide, as reported by the Kaiser Family Foundation (KFF). In Massachusetts alone, the tax credits have enabled over 300,000 residents to afford health insurance through the Health Connector. Without an extension, approximately 26,000 enrollees in the state would lose their subsidies in 2026, while many others would see a reduction in financial assistance.
Democratic lawmakers are advocating for the extension of these crucial subsidies, but negotiations remain stalled, particularly as Republican lawmakers consider their options. Last week, Senate Minority Leader John Thune proposed delaying a vote on the subsidies but did not commit to a specific outcome. In response to the ongoing situation, Senator Elizabeth Warren criticized the Republican cuts, stating, “Nobody is coming out ahead as a result of the Republican cuts. The only question is how much higher people’s insurance premiums will be.”
As the deadline for the expiration of these tax credits approaches, uncertainty looms for many Massachusetts residents who rely on the Health Connector for affordable health insurance. The upcoming weeks will be critical in determining whether these essential subsidies will be extended, impacting the financial well-being of countless individuals and families.
