More than 140,000 New Yorkers Currently Qualify for Enhanced Premium Tax Credits to Lower the Cost of Coverage

80,000 New Yorkers Anticipated to Lose Health Coverage Entirely if Congress Fails to Extend These Credits

Governor Kathy Hochul today called on Congressional leadership to pass an extension of the Affordable Care Act’s enhanced premium tax credits, which are set to expire at the end of 2025.  New York is one of 18 states to sign a joint letter stating that without these subsidies, millions of Americans will see their healthcare premiums rise by thousands of dollars.  More than 140,000 New Yorkers rely on these enhanced credits to access quality, affordable health coverage.  In addition, these credits support a further 1.7 million New Yorkers on the Essential Plan, which provides low or no-cost coverage for working families statewide.

Extension of these tax credits is critical, as New York State grapples with the devastating impacts of the GOP reconciliation law, which guts federal funding for the Essential Plan by $7.5 billion annually, more than half of the program’s total funding, beginning in 2026.  New York State is being forced to revert the Essential Plan back to a Basic Health Program as a result of the Republican budget bill, which was supported by all seven New York Congressional Republicans who knowingly voted to slash funding for the critical program.

Read the full letter here.

“Republicans in Congress just voted to make healthcare more expensive than ever for all New Yorkers,” Governor Hochul said.  “I’m proud to stand with Democratic governors across the nation urging Congress to extend these tax credits that hardworking families deserve.”

Enhanced premium tax credits have been a lifeline for many households, making health care accessible and affordable at a time when the cost of living continues to rise.  They help lower monthly health insurance premiums for working families, small business owners, older Americans not yet on Medicare, and rural residents who often rely on marketplace plans as their only option for coverage.

First expanded under the American Rescue Plan and later extended through the Inflation Reduction Act, the tax credits capped benchmark-plan premiums at a maximum of 8.5 percent of household income and expanded eligibility to individuals and families earning above the traditional 400 percent federal poverty level threshold.  These enhancements spurred a historic surge in ACA Marketplace enrollment—from around 11.4 million in 2020 to over 24 million in 2025.

Without Congressional action, these tax credits expire at the end of 2025, setting off a cascade of negative consequences: New York State of Health estimates average premiums statewide will rise by nearly 40 percent – an average monthly increase of $114 for individuals and $228 for couples.  The Congressional Budget Office estimates millions nationwide will lose coverage, leading to widespread issues in access to critical care and triggering broader economic harm and job losses in the healthcare sector.  Congressional Republican failure to extend these tax credits will reverse fifteen years of progress in driving down the State’s uninsured rate.