Governor Stein Calls for Congressional Action on ACA Tax Credits

NC Governor Josh Stein has called on Congress to extend the Affordable Care Act (ACA)’s enhanced premium tax credits beyond December 31, 2025, to protect North Carolinians from skyrocketing health care costs.

Without congressional action, 157,000 residents will become uninsured, and another 888,000 will see their health care premiums double.

“Too many North Carolinians risk either being priced out of health insurance entirely or paying exorbitant costs to continue to get essential health coverage,” the governor said in a Sept. 10 statement. “We have a responsibility to stay laser-focused on lowering costs for families, including health care costs,” said Stein. “We cannot stand by as health care costs skyrocket for families across North Carolina and the country.”

Since enhanced premium tax credits began in 2021, hundreds of thousands of state residents have been able to get affordable health insurance. From 2023 to 2024, nearly 80% of enrollees nationally were able to find plans that costs $10 or less per month, compared to only 36% without the help of enhanced premium tax credits. If Congress does not take action to extend them by September 30, the enhanced premium tax credits will expire on December 31, after which it will be too late for many to opt into affordable health insurance.

The state’s health care system is already under extreme pressure due to drastic federal cuts to Medicaid. According to the NC Department of Insurance, the expiration of premium tax credits will make it even more difficult for people to afford their premiums. Rural residents, young people, and low-income North Carolinians will be harmed the most.

When younger, healthier people exit the marketplace, costs increase for everyone. These exits also create a more volatile and untenable market for insurers, creating concerns that more insurers will pull out of the individual market altogether.