American Rescue Plan Set to Sunset
The American Rescue Plan Act (ARPA) boosted premium tax credits to make health insurance more affordable through ACA marketplaces like MNsure here in Minnesota. These extra savings were extended through 2025 thanks to the Inflation Reduction Act, but they’re currently set to expire on December 31, 2025, unless Congress steps in to extend them.
If these enhanced subsidies end as planned, a lot of Minnesotans who get their health insurance through MNsure could see big changes.
Higher Premiums:
Without the extra help, many people and families will face steeper monthly costs. Right now, the average premium after tax credits is expected to jump from around $170 a month up to $481.
Loss of Help for Middle and Higher Income Households:
Before ARPA, anyone earning more than 400% of the federal poverty level didn’t qualify for subsidies. ARPA removed that cap, but if the enhancements expire, those households will lose their eligibility again and must cover the full cost of premiums on their own.
Smaller Tax Credits for Lower Income Households:
People earning between 100% and 400% of the federal poverty level will still qualify for some help, but the credits won’t go as far. That means they’ll have to pay more out of pocket each month.
Health insurers in Minnesota are already raising concerns about what could happen if these enhanced subsidies aren’t extended. They’ve warned that premiums could jump by as much as 55%, and roughly 93,000 Minnesotans could lose their health coverage in 2026. It’s a big potential shift and it would start taking effect the year after the current subsidies expire, beginning in 2026.
To help prevent this kind of disruption, Minnesota’s congressional delegation is being urged to push for an extension of the enhanced tax credits. For the latest updates on premium tax credits and your health insurance options, you can always check MNsure’s official website.