Marylanders who get their health insurance from the ACA marketplace will see a large spike in premium costs next year.
The Maryland Insurance Administration announced premiums will increase by an average of 13.4%
The approved rates are 3.7% lower than what insurance companies suggested back in June, when the companies offered 17% hikes, far above the average of 8% a year Marylanders usually see.
The insurers claim the increase is due to Congress and the Trump administration getting rid of the federal premium tax credit in the latest spending bill.
“Under this new federal administration, Washington has shirked its duty to help middle-class Americans and families in poverty get affordable health care,” said Governor Wes Moore. “Congress should act without delay to avoid these federal tax credits being ripped away from hardworking families. No single state can fill the gap left by the federal government. But in Maryland, we will continue to do everything in our power to keep costs low for families and preserve access to affordable care.”
However, state and federal officials have not called on insurance companies to pick up any of the slack.
Carefirst BlueCross BlueShield, the largest provider, reported a $240 million profit in 2024 when the tax credits were in effect. According to ProPublica, Carefirst CEO Brian Pieninck was paid about $4.4 million in compensation last year.
UnitedHealthCare notched $14.4 billion in profits in 2024, its CEO Stephen Hemsley brings in $1 million a year, plus $60 million in non-qualified stock options.
About 500,000 Marylanders get their plans from the ACA marketplace.
With the loss of the credits, the Congressional Budget Office estimates that “the number of uninsured people will rise by 2.2 million in 2026, by 3.7 million in 2027, and by 3.8 million, on average, in each year over the 2026–2034 period.”
“The threat of the United States Congress terminating health care tax credits enacted in 2022 is about to cause many Marylanders to experience significantly higher health insurance premium increases than in past years,” said Vincent DeMarco, president of Maryland Healthcare for All!. “We call on the United States Congress to do their job and continue the federal tax credits so that Marylanders can afford the health care coverage we all so desperately need.”
Gene Ransom, president of the Maryland State Medical Society, said he is also disappointed in the hikes.
“I question the value these insurance companies are bringing to the system,” Ransom said. “The insurance prices just keep going up and up, and there's less and less care available to patients. So, who's winning on these?”
The changes will go into effect Jan. 1, 2026.
