Governor Mills Urges Congress to Extend Critical Tax Credits Maine People Need to Afford Health Insurance

Potential end of Federal tax credits is already driving up health insurance premiums in Maine, according to Maine Bureau of Insurance; Governor warns that failing to extend tax credits this month would put health coverage out of reach for thousands of Maine people

Governor Janet Mills today urged Congress to extend a critical tax credit that helps Maine people afford their health insurance.

The tax credit, known as the enhanced premium tax credit (EPTC), lowers the cost of health insurance for people who buy coverage through Affordable Care Act marketplace. The tax credit is scheduled to expire at the end of 2025 and it is unclear whether the President or Congress will extend it. Earlier today, the Maine Bureau of Insurance (BOI) said that the tax credit's uncertain future is driving up health insurance rates in the individual and small group markets.

In a letter to Maine's Congressional Delegation, the Governor warned that failure to extend the tax credit could cause monthly health premiums to skyrocket for thousands of Maine people -- as much as 117 percent. Today, 85 percent of the 61,000 people insured through Maine's state-based health insurance marketplace, CoverME.gov, receive a tax credit to reduce their monthly premium cost. An extension of the tax credits will insulate consumers from the higher rates.

In her letter to the Congressional Delegation, the Governor warned that absent Congressional action, Maine people insured through CoverMe.gov would see an "unprecedented" average increase of $258 in their 2026 premiums, and that 9,500 consumers would lose the credit entirely. The Governor noted that individuals foregoing coverage altogether would contribute to higher premiums in the future.

"Behind these numbers are real Maine people whose lives depend on affordable health coverage. CoverME.gov consumers have shared what access to insurance means for them and how losing Enhanced Premium Tax Credits would impact their families. They are our neighbors and colleagues across the state -- health aides, hairdressers, insurance brokers, and others -- whose stories share a common thread: affordable coverage is lifesaving, providing peace of mind and financial stability, especially for self-employed Mainers," wrote Governor Mills. "A March 2025 survey of CoverME.gov enrollees found that nearly 60 percent would not have enrolled in coverage without financial assistance. Rural families, early retirees, and the self-employed will be among the hardest hit if these credits expire. Without Congressional action, coverage losses will mount, premiums for those who remain will rise, and health care providers will face greater uncompensated care burdens."

In an op-ed published in today's Portland Press Herald, BOI Superintendent Robert Carey explained the expiring credits -- along with rising costs of medical services and prescription drug costs, and the impacts of the President's tariffs -- are driving up premium costs for next year. These policy choices by the president, Carey writes, threaten significant progress that Maine has made to expand affordable health coverage across the state.

"Over the past several years, Maine has made tremendous strides in providing access to affordable health insurance, through the expansion of MaineCare, improved outreach and ease of enrollment through CoverME.gov (which helps facilitate the use of the premium tax credits), and the merging of the individual and small group markets which has helped slow the growth of premiums. But all of this is in jeopardy," wrote Carey.

"Real changes are needed in the way we deliver and pay for health care in the United States, and many of them are beyond Maine's control -- but the most immediate and material interim step would be the extension of the enhanced premium tax credits. This short-term bandage will directly benefit over 60,000 Mainers right now," Carey continued.

Governor Mills has repeatedly warned that the Trump Administration's health and economic policies are causing harm to Maine people. In July, the Governor urged Congress to oppose the President's so-called "Big Beautiful Bill," which included significant cuts to Medicaid. The Governor warned the bill would "have devastating consequences for Maine people, our hospitals, our rural communities, our economy, our energy costs, and our balanced state budget."

A copy of the Governor's letter can be found here (PDF).