WASHINGTON – Senator Ruben Gallego (D-AZ) penned an open letter to Arizona health insurance companies urging them to immediately notify consumers about the potential for significant premium increases if the Affordable Care Act (ACA) premium tax credits are allowed to expire at the end of this year.
“Insurance companies, which provide health coverage to over 24 million people on the ACA marketplace, have a responsibility to send out timely notices informing beneficiaries of changes to their premiums,” wrote Senator Gallego. “Historically, these notices have been distributed beginning in early October, providing consumers with essential information about their coverage for the coming year. However, this year, there has been a disturbing delay in the release of these notices, leaving beneficiaries in the dark about the premium hikes they will face in 2026 should the ACA premium tax credits expire.”
Currently, around 13 million Americans—including approximately 370,000 Arizonans— rely on ACA premium tax credits to afford coverage. If these credits are allowed to expire, premiums are projected to rise by an average of 75%, a $780 annual increase for individuals and $842 for rural Arizonans. This would force over 100,000 Arizonans— including 35,000 children—to go uninsured.
“The situation is clear: if the tax credits are not extended, premiums will increase significantly, and consumers will face steep financial burdens. Insurers must take immediate action to educate their enrollees about what these increases will mean, especially as the window for shopping for coverage has already opened in many states,” Senator Gallego continued.
Gallego emphasized that insurers have no justification for delaying premium notices.
“As of October 6th, CMS Administrator Dr. Mehmet Oz confirmed that rates for 2026 are locked, signaling that there is no reason for this delay in notification. The delay in providing premium notices is a disservice to your members,” Senator Gallego continued. “The failure to extend ACA tax credits will result in catastrophic premium increases, and consumers must be made aware of this fact.”
Read the full letter HERE.
10/23/25