Frankfort, Kentucky, September 28, 2025
News Summary
As federal tax credits expire, nearly 100,000 Kentuckians are set to face rising health insurance premiums from January 2026. The situation has sparked concern among state officials, urging Congress to extend these vital subsidies to avoid significant increases in out-of-pocket expenses for families. Experts fear that without these supports, healthcare access could be compromised for many, especially vulnerable populations who rely on affordable insurance through the kynect marketplace.
Kentucky Faces Rising Health Insurance Costs for Nearly 100,000 Residents After ACA Tax Credits Expire
Frankfort, Kentucky – Nearly 100,000 Kentuckians are set to experience an increase in health insurance premiums starting in January 2026, following the expiration of federal tax credits that have significantly subsidized their insurance costs. These tax credits, part of the Affordable Care Act (ACA), are essential for individuals who earn just above the threshold for Medicaid but do not have access to employer-sponsored insurance.
The kynect marketplace, designed to aid Kentucky’s health insurance needs, particularly supports small businesses, older adults who are not yet eligible for Medicare, and rural communities. The impending loss of these tax credits is alarming according to a letter addressed to Congress, co-signed by Kentucky Governor Andy Beshear and 17 other state governors. This letter urges an extension of the tax credits to prevent a surge in premium costs, warning that failure to act could result in thousands of dollars in increased out-of-pocket expenses for families, forcing many to choose between healthcare, rent, and everyday necessities.
Experts have calculated that without the federal subsidies, health insurance premiums in Kentucky could rise dramatically. The average rate increase for plans within the ACA marketplace is estimated to be 20%, with the expiration of the tax credits possibly increasing overall costs by as much as 75% for those using kynect. Many individuals previously benefitted from enhanced plans that allowed premiums to drop to zero during the COVID-19 pandemic, thanks to legislative measures from former President Biden’s American Rescue Plan and the Inflation Reduction Act.
Impact on Kentucky Residents
Governor Beshear has highlighted that the elimination of these subsidies will directly affect families while emphasizing the importance of affordable healthcare as a fundamental right. The anticipated reductions threaten to undermine the healthcare safety net that many Kentuckians currently rely on.
Moreover, the potential impacts extend beyond just the upcoming expiration of the tax credits. Experts note that the previous cuts to Medicaid under former President Donald Trump’s policies could worsen the situation, placing healthcare access at risk for over 200,000 Kentuckians. Additionally, rising healthcare costs are already becoming evident with increasing expenses for hospital stays, doctor visits, and specialty prescriptions due to inflation and labor costs.
Path Forward
Priscilla Easterling, representing Kentucky Voices for Health, advocates for permanent improvements to expand access to affordable insurance and encourages state lawmakers to invest in kynect in the absence of continued federal support. The importance of responsive legislative action is underscored by recent communications from the governor calling for urgent Congressional measures regarding the expiring tax credits.
As this critical issue unfolds, it highlights a more significant problem regarding access to health insurance in Kentucky, where about 1 in 4 workers lack employer-sponsored plans. The current health insurance landscape raises questions about equity and access to care as many lawmakers appear to utilize state-sponsored insurance, further complicating the narrative of healthcare accessibility in the state.
Conclusion
The expiration of ACA tax credits poses an immediate concern for Kentucky families who rely on affordable healthcare. Now, more than ever, the focus must be on actions to protect access to health insurance and the health of constituents across the state.
FAQ
What are the ACA tax credits?
The ACA tax credits are federal subsidies used to help lower the cost of health insurance for individuals who do not qualify for Medicaid and do not have employer-sponsored insurance.
When will the tax credits expire?
The tax credits are set to expire on December 31, 2025.
How many Kentuckians will be affected by this change?
Approximately 100,000 residents will see increases in their health insurance premiums due to the expiration of these tax credits.
What potential increases can residents expect?
Residents may face premium increases of up to 75%, with average health insurance rate increases projected at 20% across the ACA marketplace.
What actions are being taken to address these potential increases?
A letter co-signed by the governor and other state governors has urged Congress to extend the tax credits to mitigate rising insurance costs.
Key Features of the Healthcare Coverage Situation in Kentucky
| Feature | Details |
|---|---|
| Number of Affected Kentuckians | ~100,000 |
| Projected Premium Increase | Average of 20% |
| Potential Out-of-Pocket Costs Increase | Up to 75% |
| Expiration Date of Tax Credits | December 31, 2025 |
| Advocacy Action | Letter to Congress from 18 governors |
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Additional Resources
- Kentucky.com: Rising Health Insurance Costs
- Forward Kentucky: Beshear Calls on Congress to Extend Tax Credits
- Kentucky Lantern: Working Is No Guarantee for Health Insurance
- USA Today: Medicaid Cuts in Kentucky
- ValuePenguin: Health Insurance Exchanges
- Wikipedia: Affordable Care Act
- Encyclopedia Britannica: Affordable Care Act
- Google Search: Kentucky health insurance
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