Governor Josh Stein has urged Congress to extend the Affordable Care Act’s (ACA) enhanced premium tax credits, which are set to expire on December 31, 2025. Stein warned that without congressional intervention, health care costs could rise sharply for hundreds of thousands of North Carolinians.
“We have a responsibility to stay laser-focused on lowering costs for families, including health care costs,” said Governor Josh Stein. “We cannot stand by as health care costs skyrocket for families across North Carolina and the country, and I urge you to do your part and take swift action to extend the enhanced premium tax credits.”
The enhanced premium tax credits began in 2021 and have helped many North Carolinians access affordable insurance. Data shows that from 2023-2024, almost 80% of enrollees nationally found plans costing $10 or less per month with these credits, compared to only 36% who could do so without them. If Congress does not act by September 30, these subsidies will expire at year’s end, potentially making it too late for many people to secure affordable coverage.
The North Carolina Department of Insurance has noted that ending the tax credits would make it harder for residents to afford their premiums. The impact would be greatest among rural residents, young people, and low-income individuals. In counties such as Dare, Hyde, Brunswick, Pamlico, and Transylvania—where increases are projected to be highest—enrollees could see annual premiums rise by more than $1,000.
A decrease in younger and healthier participants in the marketplace may drive up overall costs and lead insurers to leave the individual market. This situation comes as North Carolina’s health system is already facing strain from significant federal Medicaid cuts. Governor Stein reaffirmed his commitment to keeping health care accessible and affordable throughout the state.
For more information or to read Governor Stein’s letter urging Congress on this issue,
click here.
