Maryland Faces Rising Health Insurance Premiums as Federal Subsidies Expire

Maryland health insurance consumers are facing significant premium increases starting January 1, primarily due to the expiration of enhanced federal subsidies from the Affordable Care Act. For many individuals and families purchasing coverage through Maryland's state exchange, monthly premiums are expected to rise sharply, with some more than doubling. This increase comes amid a federal impasse in extending these temporary subsidies, despite efforts to mitigate the financial impact. Maryland has implemented a state subsidy program targeting residents earning under 400% of the federal poverty level to help offset these losses, aiming to reduce coverage drops. The exchange has reported mixed enrollment signals, with fewer new sign-ups but also fewer cancellations than anticipated, though final retention rates will only be confirmed after January payments are processed. Premium hikes are also driven by broader increases in medical and drug costs across all insurance markets, including employer-sponsored plans. The rising costs pose a challenge to maintaining coverage, as national surveys suggest a significant portion of those affected might forego insurance. Maryland officials emphasize the availability of high-quality, lower-cost options through the exchange and encourage residents to reassess eligibility for state subsidies. The state's approach includes linking coverage eligibility assessments with tax filing to provide additional enrollment opportunities for uninsured individuals. These insurance market dynamics underscore ongoing pressures in healthcare affordability and the role of state-level interventions amid stalled federal policymaking.