With potential Federal cuts to Medicaid on the horizon, renewing enhanced premium tax credits to ensure affordable insurance through the marketplace takes on greater significance
AUGUSTA— The Maine Department of Health and Human Services (DHHS) Office of the Health Insurance Marketplace (OHIM) today announced its support for renewing the enhanced premium tax credits for consumers of the health insurance marketplace.
The enhanced premium tax credits, which were first implemented in 2021 through the American Rescue Act and extended in the Inflation Reduction Act are set to expire at the end of this year unless Congress acts. Allowing these federal tax credits to expire will result in higher health insurance premiums for Maine consumers, potentially putting health coverage out of reach for thousands of Mainers. Overall, the enhanced tax credits are saving Mainers a conservative estimate of nearly $90 million in health care premium savings this year.
The enhanced tax credits have benefited tens of thousands of Mainers who do not have access to health insurance through an employer or government program, such as MaineCare, by lowering the percentage of income they need to spend on health coverage. More than 50,000 Mainers qualify for health insurance tax credits, which accounts for more than 85% of individuals purchasing health coverage through CoverME.gov, Maine’s state-based marketplace.
“With ongoing federal threats to Medicaid, having access to an affordable marketplace plan becomes all the more important for Maine people,” said Maine DHHS Commissioner Sara Gagné-Holmes. “Enhanced premium tax credits ensure that more Mainers can have reliable, affordable access to health care when they need it most.
On average, enhanced premium tax credits lower monthly premiums for Maine consumers by nearly $180. Without them, the typical monthly cost would rise from $178 to around $358 – a sharp increase that could threaten affordability for thousands.
1 Maine’s 2025 Open Enrollment Overview (PDF).
2 2025 open enrollment data, as of January 15, 2025, from the Maine Office of the Health Insurance Marketplace; Maine Bureau of Insurance.
Maine’s demographics create a challenging environment for those who don’t have access to job-based coverage. Maine is the oldest state in the nation and a large portion of the population lives in rural areas. These factors contribute to health care costs that are higher than the national average, which means Maine people face some of the highest average costs of health insurance coverage in the nation.
“The enhanced health insurance tax credits are investments that pay dividends for the health and wellbeing of Maine’s people and its economy,” said Maine DHHS’ OHIM Director Hilary Schneider. “Without them, individuals and families could not afford health coverage that has saved and improved lives, supported career changes and post-secondary education, bridged gaps in coverage and so much more.”
The expiration of the enhanced premium tax credits would also have ripple effects on Maine’s small business community. Maine’s unique merged individual and small group market relies on federal pass-through funds, authorized under a Section 1332 waiver, to lower premiums across both groups.
“In 2025 alone, these funds reduced premiums by an average of seven percent which is relief that not only benefits individuals, but small employers and their workers,” said Bob Carey, Superintendent of Insurance for the State of Maine. “If Congress fails to act, these savings for small businesses – and the stability of our marketplace – are at risk.”
Allowing these federal tax credits to expire at the end of 2025 will result in higher health insurance premiums for Maine consumers, potentially putting health coverage out of reach for thousands of Mainers. Overall, the enhanced tax credits are saving Mainers a conservative estimate of nearly $90 million in health care premium savings this year. For additional analysis, read Marketplace Health Tax Credits: Helping More Mainers Afford Health Coverage (PDF).
The stories of the individuals and families that have benefited speak for themselves:
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Holly from Hope, ME - Holly has a modest income working as a home care supervisor and relies on the support CoverME.gov insurance coverage and enhanced premium tax credits offer to cover her ongoing health care costs while working to pay off medical debt accrued prior to having insurance coverage. “Without EPTC my monthly premium would double in cost, and I would not be able to afford health insurance that my life relies on. I will likely die without health insurance.”
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Scott from North Yarmouth - After losing employer-sponsored coverage, Scott was relieved to find affordable health coverage for himself and his daughter through CoverME.gov. He has always thought he made a good salary, but if the EPTC expires and his health coverage costs increase significantly on top of other increasing living expenses, it will make it challenging to afford living in Maine. “Because of the current cost of living and the cost of health care in Maine, I will not have an option to live here anymore if the enhanced premium tax credits do not continue.”
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Stephanie from Fairfield - Stephanie is self-employed and owns a hair salon in Central Maine. Without CoverME.gov, Stephanie has no other option to access healthcare. With this health coverage and the affordability thanks to EPTC, Stephanie can maintain financial stability and a basic quality of life, caring for her husband and aging mother. “Affordable health insurance, and the EPTC that make it possible, allow families like mine to survive, and to live with dignity.”
For more stories from CoverME.gov members and information about the impact of CoverME.gov on Maine people, read Stories from Maine: How Enhanced Premium Tax Credits Sustain Lives and Communities (PDF) and see the Department’s recent blog post.