Delaware is spearheading a coalition of 18 states calling on Congressional leadership to extend Affordable Care Act (ACA) enhanced premium tax credits, which are set to expire at the end of 2025.
ACA enhanced premium tax credits are federal subsidies that make health insurance purchased through the ACA — also known as ObamaCare — marketplace more affordable.
Subsidies have been in place to increase affordability since ObamaCare was passed in 2010, but during the pandemic, Congress increased the amount of the credit and expanded eligibility to more middle-income individuals.
These enhanced credits led to the doubling of ACA enrollment nationwide and in Delaware, which enabled the state to bring in more competition to its already and still small marketplace.
Without these subsidies, states will have to pick up the extra cost or individuals will pay significantly more for health insurance. Average premiums could spike by more than 75%, leading to an average increase of $700. Estimates suggest that marketplace enrollment could fall by up to 50%, and four million Americans could lose insurance coverage entirely.
Gov. Meyer along with 17 other Democratic governors sent a letter to Congressional leadership asking for these credits to be extended beyond the end of 2025, citing concerns over the millions of people who stand to lose health coverage and the increased cost burden for citizens nationwide.
“When families are forced to choose between paying for housing, groceries or healthcare, our entire economy suffers right here in Delaware, in the region and really across our country. Extending these marketplace credits is one of the simplest ways for Congress to bring relief to households that are already stretched thin and one of the most effective ways to foster long-term economic growth," Gov. Meyer said at a press conference Tuesday.
U.S. Senate Democratic Leader Chuck Schumer (D-N.Y.) has signaled to Republican leadership that these extensions must be included in upcoming government funding decisions, otherwise Senate Democrats will withhold the necessary votes to pass what is known as a budget continuing resolution.
The proposed Republican-lead stopgap measure would only fund the federal government through Nov. 21, but it would temporarily avoid a government shutdown, which would begin on Oct. 1 if Congress doesn't pass the continuing resolution by Sept. 30.
U.S. House Speaker Mike Johnson (R-La.) says the debate over the ACA subsidies is a "a December policy issue, not a September funding issue," but Democrats argue open enrollment for people with ACA plans begins on Nov. 1, and several insurance providers are already announcing substantial rate hikes.
“Of our more than 50,000 Affordable Care Act enrollees, nearly 46,000 were supported by tax credits. That's 92% of the policyholders, and the credits brought down premiums an average of $538 a month and more than $6,400 a year," said Delaware Deputy Insurance Commissioner Tanisha Merced.
Delaware announced its new marketplace health insurance rates in August, which all increased anywhere from 25-35% due to federal budget activities, changes made to federal marketplace rules and the expiration of ACA enhanced tax credits.
Delaware is already losing one of its four insurance providers at the beginning of 2026; Aetna, which is leaving all the states it offers ACA plans in due to financial losses and lack of profitability.
That leaves AmeriHealth, Highmark and Celtic Ambetter in Delaware's marketplace. Celtic Ambetter secured a 31.8% rate increase through the Delaware Department of Insurance after threatening to exit the state’s marketplace and leave their policyholders scrambling for new coverage.
"Ambetter did secure a rate that was higher than what the department would have preferred, however, it was actuarially justified — we did have our independent actuaries review it," Deputy Commissioner Merced said. "What we continue to do is have conversations through our national association with carriers. We continue to encourage them to come to Delaware... We have not heard from any other carrier that they will be pulling out of the market, even if the enhanced tax credits are not extended. So at this point, we believe we will have the same three carriers, at least for a good amount of time."
Gov. Meyer argues renewing the enhanced tax credits should not be a partisan issue, and he hopes Congress will unite to expand the expiration deadline before the marketplace opens in November.
"I don't think it's a Democrat/Republican issue. There are a lot of families who we all serve in districts across this state, from north to south, who can't kick the can down the road when you're talking about increases that are doubling, tripling healthcare costs. It's something that urgently needs to be addressed," Gov. Meyer said. "So I'm encouraging [Congress] to do whatever it takes to roll up their sleeves and get this done, and get it done in the next 45 days. Otherwise, the impact on Delawareans, like the impact on working people across this country, is going to be dramatic, and it's not going to be good."
Gov. Meyer says his only official communication with Congressional leadership on the matter was confirmation that the letter from the 18 Democratic governors had been received.
If Congress renews the tax credits before Nov. 1, Delaware's health insurance rates could be lowered before the marketplace opens.
