Enrollment in Maine’s Affordable Care Act (ACA) plans for 2026 has seen a significant decline, with approximately 5,500 individuals canceling their insurance due to rising costs. As of December 15, 2025, the state reported a 7% decrease in enrollment compared to the same period last year. The Maine Department of Health and Human Services attributed this drop to the expiration of certain tax credits that had previously helped reduce premium costs for enrollees.
The average premium increase for ACA plans in Maine is a staggering 77%, caused by the lapse of Enhanced Premium Tax Credits, which were initially approved in 2021 and extended only until the end of 2025. These credits had provided essential financial assistance to many enrollees, but their expiration has left numerous individuals unable to afford the new rates. In a statement, Lindsay Hammes, a spokesperson for the Maine DHHS, noted that the most common reason given for canceling plans was unaffordability.
Mitchell Stein, an independent health policy analyst based in Maine, expressed concern regarding the implications of this trend. He stated that the reduction in enrollment was “completely expected” given the rising costs, warning that many individuals are now gambling on their health by opting out of coverage. “People who are dropping coverage are gambling that they won’t have a catastrophic health event,” Stein emphasized. “They’re saying, ‘I hope I won’t have a heart attack this year.’”
Enrollment and Financial Impacts
The deadline for purchasing a plan effective January 1, 2026, was December 15, while plans starting February 1 have a deadline of January 15. Typically, a large portion of ACA signups occurs in December to avoid interruptions in health coverage. Although the state could not provide the final enrollment figures by the December 15 deadline, it did indicate that 57,881 individuals had selected a plan by December 13, down from 64,678 for the previous year.
Hammes highlighted that rates have skyrocketed for many enrollees, particularly those earning more than 400% of the federal poverty level, which is approximately $85,600 for a two-person household. This income bracket was primarily reliant on the Enhanced Premium Tax Credits for premium assistance. Alarmingly, 34% of those canceling their 2026 plans fell into this high-income category.
Stein further elaborated on the consequences of the expiring credits, stating the current situation could create an unhealthy cycle within the insurance marketplace. As younger and healthier individuals leave, those with pre-existing conditions are left in the insurance pool, which will drive rates even higher.
Political Landscape and Future Prospects
The debate over the extension of Enhanced Premium Tax Credits continues in Congress, with a divide largely along party lines. Most Republicans, alongside President Donald Trump, oppose extending these credits. However, a coalition of moderate House Republicans has proposed a bill that would prompt a vote in January on a three-year extension of the credits. Additionally, some moderate Republican senators, including Maine’s own Senator Susan Collins, are negotiating with Democrats for a potential bipartisan solution that may extend most credits while introducing new eligibility criteria.
Both Collins and Senator Angus King, an Independent from Maine, voted in favor of extending the credits last week, but the proposal failed to secure the 60 votes needed in the Senate to pass. Collins also supported a Republican plan that did not extend the credits but allocated up to $1,500 for health savings accounts, which cannot be used for premium payments. King opposed that plan.
Maine’s Representatives, Chellie Pingree and Jared Golden, also support the extension of the credits. Meanwhile, the number of new enrollees—those signing up for ACA insurance for the first time—has dropped by 29% compared to the previous year. Hammes noted, “We have the lowest number of new consumers at this time of year since Maine launched its state-based marketplace in 2021.”
With January bills now being issued, there is concern that more individuals may choose to cancel their plans as they face the reality of increased costs. As the situation evolves, the future of ACA coverage in Maine remains uncertain, with many residents left to navigate the challenges of rising healthcare costs.
