Gov. Healey Pledges $600M To Limit Health Care Costs Amid D.C. Obamacare Debate

MASSACHUSETTS — Gov. Maura Healey has pledged $600 million in Commonwealth Care Trust Fund resources to limit health care premium increases for those who use the Massachusetts Health Connector as Congress debates extending the Obamacare-era tax credits nationwide.

Acting ahead of Thursday night's House of Representatives vote to restore those subsidies — after months of back-and-forth through the federal government shutdown that led to them expiring on Jan. 1 — Healey increased the state's contribution to the health insurance credits by $250 million to mitigate the pending increases.

The Healey Administration said the contribution will benefit about 270,000 customers in ConnectorCare who make below 400 percent of the federal poverty level. In Massachusetts, that amounts to $62,600 for an individual or $128,600 for a family of four, whom she said will now "see little to no premium increases because of the expiring federal credits, while also lowering other out-of-pocket costs like co-pays and deductibles."

"We are taking the strongest action in the nation to address them and keep costs as low as possible for families," Healey said. "Despite this increased state investment, far too many people will still see their premiums increase because of the White House.

"President Trump and Congressional Republicans need to do their jobs and extend these federal credits so that people can afford the health insurance that they need. While Washington raises costs, we are working hard to lower them — it's why we capped health care deductibles and co-pays for the first time, as well as the cost of insulin and inhalers. We will continue to do all we can to make health care more affordable in this state."

There was some movement this week on Capitol Hill after months of stagnation on the subsidies when the House voted to extend them. The bill now moves on to the Senate for debate.

"Thanks to the persistence of the American people, because millions of constituents have called their members of Congress, shown up at town halls, shown up and marched in the streets," U.S. Rep. and Democratic Whip Katherine Clark (D-MA) said ahead of Thursday's vote, "because of parents who
spoke out for their kids, doctors who spoke out for their patients, neighbors who mobilized together — today, we have a chance to vote for Americans' health care."

The Obamacare subsidies became a key sticking point during the six-week government shutdown — with Democrats demanding the credits be part of a bill to reopen the government, while Republicans insisted on a "clean bill" vote with the subsidies considered only after the government reopened.

Democrats eventually yielded, and attempts to extend the credits before they expired at the end of 2025 were unsuccessful.

On Thursday, 17 Republicans joined Democrats in voting to extend the subsidies for three more years.

Pending federal action, the Healey Administration said the state contribution will limit the monthly premium increase for a couple making $75,000 with two kids to $206 — up from $166 — compared to the $452 per month it would have been with no subsidies.

A single 39-year-old making $40,000 who previously paid $131 per month for the lowest cost coverage would have had to pay $286 per month for the same plan this year, Healey said, but instead will pay $152 per month.

Healey said she has directed the Health Connector to sustain the increased investment, while also exploring whether there are other resident groups that can be brought within the reach of the ConnectorCare assistance.

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