Governor Hochul Urges Congress to Extend affordable Care Act Tax Credits, Warns of Premium Hikes and Coverage Loss
ALBANY, NY - Governor Kathy Hochul today implored Congressional leaders to extend the Affordable Care Act’s (ACA) enhanced premium tax credits, set to expire at the end of 2025.These credits are vital for ensuring affordable healthcare access for millions of New yorkers and Americans.
New York has joined 17 other states in a unified call to action, outlined in a joint letter,warning that the expiration of these subsidies will lead to notable premium increases – potentially thousands of dollars per family.Over 140,000 New Yorkers currently rely on these enhanced credits, alongside 1.7 million more benefiting from the essential Plan, which provides low or no-cost coverage.
This call for action comes as New York faces cuts to the Essential Plan due to recent federal legislation. The GOP reconciliation law will reduce federal funding for the program by $7.5 billion annually starting in 2026, forcing the state to revert the Essential plan to a basic Health Program. Governor Hochul highlighted that all seven New York Congressional Republicans supported this budget bill, knowingly slashing funding for this critical program.
“Republicans in Congress just voted to make healthcare more expensive than ever for all new Yorkers,” said Governor Hochul. “I’m proud to stand with Democratic governors across the nation urging Congress to extend these tax credits that hardworking families deserve.”
Expanded under the American Rescue Plan and the inflation Reduction Act, these tax credits have capped premiums at 8.5% of household income and broadened eligibility, driving a historic increase in ACA Marketplace enrollment - from 11.4 million in 2020 to over 24 million in 2025.
without Congressional intervention,the expiration of these credits will have severe consequences. New York State of health estimates average premiums will rise by nearly 40 percent statewide – an average of $114 per month for individuals and $228 for couples. The Congressional Budget Office projects millions nationwide will lose coverage, impacting access to care, the economy, and healthcare jobs. This inaction will also undo fifteen years of progress in reducing the state’s uninsured rate.
Read the full letter from the governors hear: Joint Letter on ACA Tax Credits
