State insurance officials warn that thousands of Marylanders who bought health insurance on the state marketplace could see the cost of coverage increase an average of 17% next year unless Congress extends federal subsidies that are set to expire in December.
The Maryland Insurance Administration (MIA) said in a press release Tuesday that health insurers are asking the state to raise premiums between 8.1% and 18.7% for individual plans offered under the Affordable Care Act for 2026. The increase would hit nearly 300,000 Marylanders who buy their health insurance through the state marketplace.
Insurers say the rate increases are needed to account for the impending expiration of federal insurance premium tax credits under the Affordable Care Act that are set to expire at the end of the year. If the tax credit remained, insurers would only be seeking “an overall average rate change of 7.9%, with most carriers filing for an increase between 5% and 7%,” the MIA statement said.
The tax credit expiration is just one of the changes under discussion at the federal level that state officials fear could upend Maryland’s insurance marketplace and lead to higher premium costs.
Maryland Insurance Commissioner Marie Grant said the budget reconciliation bill recently passed by the House of Representatives could lead further increases insurance premiums and make it harder to enroll in an ACA individual plan.
