Health Insurance Drop-Offs in Massachusetts Rise
Over 10,000 residents in Massachusetts have opted out of their health insurance plans through the Massachusetts Health Connector, primarily due to anticipated increases in premiums as federal subsidies come to an end.
As the open enrollment period deadline of December 23 approaches, Audrey Morse Gasteyer, the Executive Director of the Health Connector, mentioned on Tuesday that the rate of cancellations is significantly higher compared to last year. This surge stems from the expiration of enhanced tax credits from the Affordable Care Act, which has raised costs for many. She noted that the current trend illustrates the challenges faced by families caught between rising expenses and stricter regulations under the One Big Beautiful Bill Act.
“In the first month of open enrollment, over 10,000 individuals have canceled their insurance for 2026, which is double the number from the same point last year. This clearly shows that people are very aware of these price hikes and are understandably worried,” Gasteyer remarked.
While some individuals are purchasing new plans through the Connector, Gasteyer was unable to provide specific numbers.
To ensure coverage starting in January, individuals need to select a plan and make a payment by December 23. The open enrollment period will conclude after one month if confirmed coverage is for February.
The enhanced federal ACA premium subsidies are set to expire on January 1. Even though there is some interest among lawmakers in extending these subsidies, there’s currently no bipartisan consensus for a solution.
State officials warn that the ending subsidies, along with new eligibility restrictions and rising costs under the One Big Beautiful Building Act, could greatly affect the affordability and accessibility of marketplace insurance for many residents.
During a press conference, Gasteyer reiterated that estimates suggest “hundreds of thousands of people across Massachusetts could lose health coverage through Health Connector and Mass Health.”
Gov. Maura Healey also held a press conference urging Republicans in Congress and President Trump to consider extending the enhanced credits established during the Biden administration.
This grant originated in the American Rescue Plan Act of 2021 and was further prolonged by the Inflation Control Act of 2022, set to expire on December 31, 2025. For the past few years, the subsidies have temporarily eased health insurance premium burdens for Americans earning up to 400% of the federal poverty level. If Congress doesn’t act, the regulations will revert to what they were before 2021.
“My message to President Trump and Congress is straightforward: Do your job. Let’s address the issue and protect people. We need to ensure continued health care coverage and prevent healthcare costs from rising,” Healey stated.
Senate Democrats plan to push for a vote this week on a three-year extension of the ACA tax credits, but significant Republican support remains unlikely for the measure. Despite warnings from members of both parties about the adverse effects on consumers due to expiring credits, House leadership has not rallied around a comprehensive plan, and President Trump has yet to propose a solution.
Some Republican senators have introduced alternative health care proposals.
One of these proposed ideas, which seems to have backing from Finance Chairman Mike Crapo of Idaho and Health Commissioner Bill Cassidy of Louisiana, would not expand tax credits but instead allocate funds to health savings accounts for enrollees. This concept reportedly has the favor of President Trump as well.
“Rather than giving all of this money to insurance companies, let’s provide it to patients. By letting them control their accounts, we empower individuals and work towards making healthcare affordable again,” Cassidy mentioned.
Despite the layoffs at Connector, Gasteyer emphasized that the state remains committed to enrolling new individuals during the open enrollment season.
“We continue to see new sign-ups for coverage, which is important and encouraging,” she noted, highlighting the agency’s outreach efforts, including multilingual navigators and registration assistance available at 50 locations across the state.
When asked whether Massachusetts would finish the application period by December 23 with fewer eligible participants than last year, Gasteyer replied, “It’s difficult to say right now—there’s always a fluctuation as new individuals come on board and others drop off. So I’m not in a position to predict what things will look like once the open application system closes.”
As the December 23 deadline nears, state officials urge anyone facing increased premiums, loss of subsidies, or eligibility changes to seek assistance promptly while coverage options are still available.
