State by State: How much more will MARYLAND residents pay if the enhanced #ACA subsidies aren't extended?

It was in early 2021 that Congressional Democrats passed & President Biden signed the American Rescue Plan Act (ARPA), which among other things dramatically expanded & enhanced the original premium subsidy formula of the Affordable Care Act, finally bringing the financial aid sliding income scale up to the level it should have been in the first place over a decade earlier.

In addition to beefing up the subsidies along the entire 100 - 400% Federal Poverty Level (FPL) income scale, the ARPA also eliminated the much-maligned "Subsidy Cliff" at 400% FPL, wherein a household earning even $1 more than that had all premium subsidies cut off immediately, requiring middle-class families to pay full price for individual market health insurance policies.

Here's what the original ACA premium subsidy formula looked like compared to the current, enhanced subsidy formula:

Unfortunately, the ARPA's subsidy enhancements included a major caveat: They were only in place for three years, originally scheduled to terminate effective December 31, 2023 (they were retroactive to the beginning of 2021).

The good news is that this sunset date was bumped out by another two years as part of the Inflation Reduction Act (IRA) passed in 2022. The bad news is that this extension is currently scheduled to end effective December 31, 2025. Needless to say, with Trump winning reelection and Republicans about to gain a trifecta, it's highly unlikely that the IRA's enhanced subsidies are going to be be extended further.

 I decided to run the numbers myself to get an idea of just how much enrollees real-world health insurance premiums are likely to increase starting in January 2026 if the upgraded ARPA/IRA subsidies expire at the end of 2025.

For this analysis, I'm using four household scenarios, at several different income levels for each:

• a 50-yr old single adult earning between $20K - $70K/year
• a 30-yr old single parent w/an 8-yr old child, earning between $20K - $90K/year
• a 40-yr old couple w/2 children age 15 & 12, earning between $40K - $130K/year
• a 64-yr old couple earning between $20K - $90K/year

I should give a shout-out to KFF's Subsidy Calculator, which made it easier for me to run these calculations than trying to do so directly via HealthCare.Gov or the state exchanges would have been.

There's several caveats involved here.

• Both the Federal Poverty Levels (FPL) and average Benchmark Silver ACA premiums are as of 2025. For 2026, the first year that the impact of the enhanced subsidies ending would actually go into effect, FPL levels will be a bit higher, and the benchmark Silver premiums will likely be higher in most states as well.

• Benchmark Silver premiums vary widely from state to state, Rating Area to Rating Area, county to county and potentially even from zip code to zip code in some states. Not every plan is offered throughout an entire rating area, which can impact which Silver plan is considered the Benchmark for that area.

  I'm therefore picking a single zip code for each state...and I'm using the capital city of each state to do so. Note that the capital is also the largest city in some states but not in others.

• "Single Parent" and "Nuclear Family" scenarios: In some states, children under 19 are eligible for CHIP or Children's Medicaid at a significantly higher household income level (in some states they're eligible up to 200% FPL or more). These analyses don't take that into account.

• These analyses assume that the enrollees choose the benchmark Silver plan. In many cases they'd be better off choosing a Gold or Bronze plan (or even Platinum, although those aren't even available in most states).

OK, with all that understood, let's take a look (note: "infinity" simply means that the net monthly premium for that household would go from $0 (free) to some number higher than $0...which technically means their premium would increase "infinity percent" even if it only went from $0 to $1/month.

Instead of going alphabetically, I've decided to analyze the states from lowest to greatest net premium increases for the most dramatic case study (a 64-yr old couple earning just over the 400% FPL "Subsidy Cliff" threshold).

With that in mind, here's what it would look like in MARYLAND:

IMPORTANT: As is the case some other states, Maryland has their own supplemental financial subsidies for some enrollees on top of the federal advance premium tax credits (APTC). Maryland's program is unique in that their state-based subsidies are only available to enrollees aged 18 - 37.

The only household of the four examples I'm using which is eligible for the Young Adult Premium Assistance program is, therefore, the 30-yr old Single Parent. I've included a 3rd column below to show what their net premiums are with both the IRA subsidies and the YAPA state subsidies included. I'm not sure how the YAPA program would be impacted if the IRA subsidies expire, however.

I've also started including a "Notes/Additional Financial Aid" column on the right side which includes things like Cost Sharing Reduction (CSR) assistance and Medicaid/CHIP eligibility for various households depending on their eligibility in addition to state-based supplemental subsidies and of course federal APTC assistance.

In Maryland, a single 50-yr old would see his net premiums jump by as much as 189%, while a single parent earning $50,000/year would go from paying as little as $54/month (with IRA & YAPA) to $299/month...up to a 5.5x increase.

This is almost quaint compared to a family of four earning $50,000/year, however, who would see a nearly ten-fold increase in their premiums from just $17 to $168/month.

Then there's the 64-yr old couple earning $90,000/yr, who would have to shell out nearly $13,000 more per year for the same coverage.

For what it's worth, Maryland currently has around 169,000 residents enrolled in subsidized ACA exchange plans (plus another 47,000 paying full price), and over 430,000 enrolled in Medicaid via ACA expansion.