imagine your health insurance bill suddenly skyrocketing six or seven times. For many Alaskans, this isn’t a hypothetical nightmare, but a looming reality if Congress fails to act on expiring Affordable Care Act (ACA) premium tax credits.
On May 12th, 2025, the Alaska Senate passed House Joint Resolution No.9 (HJR 9), urging Congress to extend these crucial tax credits .Representative Genevieve Mina introduced the resolution, now headed to Alaska’s Congressional delegation .
Senator Forrest Dunbar emphasized the urgency, warning of potential health care cost spikes for families, small businesses, and the self-employed .
These enhanced tax credits, initially expanded under the American Rescue Plan Act and later the Inflation Reduction Act, are set to expire at the end of 2025 . They cap premiums based on income, making health coverage more accessible for working families and small businesses.
Without them, the Urban Institute projects a staggering 63% average increase in ACA marketplace premiums in Alaska .
The Ripple effect of Expiring Tax Credits
The consequences extend beyond just higher premiums.Alaska stands to lose over $287 million in annual tax relief . This could lead to:
Over 80% of Alaskans enrolled in the marketplace qualify for premium subsidies .
Representative Mina highlighted the particular risk to small businesses and entrepreneurs, especially in rural and underserved communities . Alaska does have a Small Business Health Options Program (SHOP) that helps small businesses access affordable health insurance options for their employees, providing tax credits and subsidies for businesses with up to 50 full-time employees [1]. However, the expiration of the ACA tax credits could negate these benefits.
the Alaska SHOP program offers a variety of plans from different insurance carriers [1].
The resolution also points out the potential damage to Alaska’s innovative reinsurance program, which relies on stable premium levels to function effectively .
Alaskans can explore DenaliCare through the federal Health Insurance Marketplace or by contacting the Alaska department of Health and Social Services’ Division of Public Assistance at 907-465-1617 [3].
HJR 9 now rests with Alaska’s federal delegation, carrying a bipartisan message: extend or make permanent these vital tax credits .The future of affordable health care for thousands of Alaskans hangs in the balance.
Potential Scenarios: A Look Ahead
Here are a few possible outcomes and their implications:
Alaska implemented a reinsurance program in 2018, which has helped lower premiums for unsubsidized health plans [2].
The coming months will be critical for the future of health insurance affordability in Alaska. The decision rests with Congress, and the impact will be felt by families, small businesses, and the entire state.
What questions do you have about the ACA tax credits and their potential impact on Alaska? Share your thoughts in the comments below.
Alaska health insurance, ACA tax credits, Affordable Care Act, health insurance premiums, Alaska small business, health insurance marketplace
The Affordable Care Act (ACA) has been a lifeline for many Alaskans, providing access to affordable health insurance. But with key tax credits set to expire at the end of 2025, the state faces a potential health insurance crisis. To understand the implications,we spoke with Dr. anya Sharma, a health policy expert with a focus on rural healthcare access. Dr.Sharma, thanks for joining us.
Thank you for having me. It’s a crucial issue facing Alaska right now.
Let’s dive right in. the article highlights a potential 63% average increase in ACA marketplace premiums in Alaska if Congress doesn’t act. That’s staggering. Can you put that in context for our readers?
Absolutely. Alaska already has some of the highest healthcare costs in the nation, due to its remote geography and unique logistical challenges. These ACA tax credits are designed to offset those high costs by capping premiums based on income. A 63% increase would effectively price many Alaskans out of the health insurance market. Imagine paying hundreds more per month – that’s a very real scenario without congressional action. The subsidies help Alaskans better manage the expenses associated with healthcare.
The Alaska Senate recently passed House Joint Resolution No. 9, urging Congress to extend these tax credits. What makes these tax credits so critically important for Alaska specifically?
The resolution is a strong signal of the urgency in alaska. As the article mentions, over 80% of Alaskans enrolled in the marketplace qualify for premium subsidies. That’s a significant proportion of the population. As of the state’s geographic challenges, the cost of insurance is considerably higher than it is indeed in mainland USA. Furthermore, Alaskans are more vulnerable to this loss of funding because the state has fewer alternative programs to compensate for the increase in costs.
The article mentions a potential loss of $287 million in annual tax relief.What ripple effects could that loss have on Alaska’s healthcare system?
It’s a complex issue with interconnected consequences. Fewer people insured translates directly to more uncompensated care costs for hospitals. That is, hospitals are forced to provide care to Alaskans who are uninsured and therefore cannot pay for services. Hospitals will need to recoup those losses somehow, possibly through increased service costs for the people who are still insured. Many Alaskans might delay or forgo necessary medical care when it becomes too expensive, leading to poorer health outcomes in the long run. There would also almost certainly be increased strain on the state’s Medicaid program as more people become eligible due to lower incomes related to a job loss or reduced hours at work and Alaskans seek alternative assistance programs. It’s a cascade affect with negative implications across the board.
The article also points out the impact on small businesses and entrepreneurs. Can you elaborate on that?
This is a crucial point often overlooked. Small businesses are the engine of Alaska’s economy, particularly in rural communities. The ACA tax credits help these businesses offer competitive health insurance packages to attract and retain employees. Without those credits, these businesses would be hit particularly hard. alaska does have the Small Business Health Options Program (SHOP), but the benefits of Alaska SHOP are diminished when ACA tax credits expire and insurance costs spike. Many businesses might not be able to take advantage of the Alaska SHOP program with the added financial burden. This could stifle economic growth and lead to job losses.
Alaska has a reinsurance program in place. How does the expiration of ACA tax credits affect that program?
Alaska’s reinsurance program is an innovative approach to stabilizing the insurance market by helping to cover high-cost claims. This program is really effective when used alongside of ACA tax credits. Stable premiums promote greater enrolment in the private market where the reinsurance program is effective. The reinsurance program can cover the healthcare costs when Alaskans are enrolled in the insurance marketplace, but those Alaskans must be able to afford the monthly premiums to take advantage of the program’s cost-savings.
What practical advice would you give to Alaskans who are worried about their health insurance costs in 2026?
First, stay informed. Follow this issue closely and contact your Congressional representatives to let them know your concerns. Second, explore all available options. Alaskans can explore DenaliCare through the federal Health Insurance Marketplace or by contacting the Alaska department of Health and Social Services’ Division of Public Assistance. Third, understand your eligibility for different programs and subsidies. Don’t assume you won’t qualify. And plan ahead so you are not caught off guard.
What’s the most important thing readers should take away from this discussion?
The expiration of ACA tax credits poses a very real threat to the affordability of health insurance in Alaska. It’s not just a policy debate; it’s about access to care, the health of communities, and the economic well-being of the state.Urgent action is needed to prevent a potential crisis.
Dr. Sharma, thank you for your insights.
Thank you.
