Massachusetts health exchange starts predicting significant premium increases for 2026.

Democratic lawmakers are advocating for an extension of tax credits aimed at reducing healthcare expenses for millions of Americans, with those credits set to expire at the year’s end.

As open enrollment draws near, Massachusetts’ version of the Affordable Care Act has alerted residents about potential increases in premiums. With the federal shutdown ongoing, Democratic lawmakers are pushing to extend these essential tax credits.

The Massachusetts Health Connector is in the process of sending out eligibility letters containing premium details for 2026, ahead of the enrollment period starting on November 1. A representative indicated that if the enhanced premium tax credit isn’t renewed, the average premium hike could exceed $1,300 per year.

“We’ll begin to see premium increases reflected in our online member portal through Health Connector,” explained Audrey Morse Gasteyer, the executive director. “However, the actual mail notifications probably won’t arrive in people’s mailboxes for another few days or maybe even a week or two.”

Older adults and those in rural areas in Massachusetts seem particularly vulnerable to these changes. For instance, a couple, self-employed and aged between 57 and 62, earning around $85,000 annually, might face premiums that could range from $1,687 to $3,124 without subsidies.

Initially introduced in 2021, the ACA tax credit was extended through 2025 via the Inflation Control Act. This extension has led to a significant increase in marketplace enrollment, doubling the numbers of participants from 11 million to 24 million.

According to a Massachusetts Health Connector fact sheet, the tax credit has enabled over 300,000 residents to purchase health insurance. If an extension does not come through, around 26,000 enrollees may lose their subsidies in 2026, with others likely to see a reduction in financial assistance.

As Republicans consider expanding federal subsidies for health insurance within the ACA markets, Democrats remain cautious. Last week, Senate Majority Leader John Thune floated the idea of postponing a vote on the subsidies, though he didn’t promise any outcomes.

Senator Elizabeth Warren voiced her concerns, stating, “No one is stepping in as a result of budget cuts from Republicans. The challenging question now is how much insurance premiums will rise.”