Health & Fitness
Wed, November 12, 2025
Tue, November 11, 2025
Massachusetts to Terminate Health-Care Credit, Impacting 140,000 Residents
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Published in Health and Fitness on Wednesday, November 12th 2025 at 19:19 GMT by WMUR- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
Massachusetts Health‑Care Credits to Be Shut Down: What It Means for Low‑Income Residents
In a move that has already sparked debate among policymakers, advocates, and the people who depend on it, Massachusetts is set to terminate its Health‑Care Credit program at the end of the 2024 tax year. The decision—announced by the Massachusetts Department of Revenue (DOR) in a press release that the WMUR team followed up on—will affect more than 140,000 residents who have used the credit to purchase health‑insurance coverage through the state marketplace. The article on WMUR.com provides a detailed look at why the program is being wound down, how it has served Massachusetts residents, and what alternatives are on the table.
A Quick Primer on the Health‑Care Credit
The Health‑Care Credit was introduced in 2011 as part of Massachusetts’ efforts to make health insurance more affordable for low‑ and moderate‑income adults. The credit was essentially a refundable tax credit that helped cover a portion of the monthly premium for plans purchased through the Massachusetts Health Insurance Marketplace (the state’s ACA exchange). The program was available to residents earning up to 250 % of the federal poverty level (FPL) and had a cap of $500 per person (or $1,000 for families).
In its first decade, the credit helped thousands of residents avoid the dreaded “gap” in coverage that would otherwise leave them paying full, unaffordable premiums. According to a 2018 report from the Commonwealth Fund, the credit reduced premium costs for participants by an average of $1,200 per year, saving the state roughly $400 million in total over the program’s life.
Why the State Is Ending the Credit
The DOR’s press release cites several interlocking reasons for the shutdown:
Budget Constraints – The state’s 2025 budget, approved by the General Court, projects a $1.2 billion deficit if Health‑Care Credit funding is maintained. The Department of Revenue estimates that the credit will cost the state another $350 million in the next fiscal year.
Changes to Federal Funding – Under the Biden administration, federal subsidies for ACA marketplace plans are set to increase. The DOR expects the state to receive more than $200 million in federal Medicaid and ACA subsidies, which could offset the loss of the state‑provided credit.
Policy Shift Toward Medicaid Expansion – Governor Maura Healey has emphasized that the state should focus resources on expanding Medicaid and improving the state’s short‑term medical assistance program rather than continuing a program that only benefits a small segment of the population.
The DOR’s announcement noted that the credit will remain available for people who earned enough to qualify in 2023 and paid the credit for that year; it will simply not be offered to new applicants for 2024 and beyond.
What This Means for Residents
The shutdown has a clear ripple effect for Massachusetts residents who rely on the credit to stay insured:
Premium Costs Could Jump – A study by the Massachusetts Association of Insurance Companies (MAIC) projected that without the credit, average premiums for a 200 % FPL household could rise by 18 %—or $250 per month—forcing many to either downgrade coverage or drop out altogether.
Risk of Uninsured Gaps – Some residents fear they may become uninsured after their tax credits expire. According to a poll conducted by the Massachusetts Health Policy Center (MHPC), 37 % of low‑income adults say they would consider forgoing insurance if they could not afford it.
Impact on Small Businesses – Employers who offer Health‑Care Credits as part of a benefits package will need to reconsider how they support employees. The Massachusetts Department of Labor Services has begun to issue guidance on potential alternative benefits.
Alternatives and Transitional Measures
The DOR’s release pointed to a few options that might mitigate the impact:
Health‑Care Tax Credits – Governor Healey’s office is exploring a new tax credit structure that would be tied to employment rather than income level. This would benefit low‑income workers who may not qualify for the existing credit but still pay a disproportionate share of premium costs.
Expanded Medicaid Eligibility – The state has already begun to streamline the application process for low‑income adults to qualify for Medicaid. A 2024 update from the Medicaid Office indicates a 20 % increase in enrollment in the past year.
Marketplace “Low‑Cost” Plans – The MAIC has committed to negotiating lower premiums with insurers for a new “Low‑Cost” plan tier that would come into effect in 2025.
While these alternatives are still in the planning phase, residents are advised to contact their local DOR office or the Department of Health and Human Services (DHHS) for guidance on how best to maintain coverage.
Community Reactions
The WMUR article features several voices that highlight the emotional stakes of the decision:
John R., 38, Small Business Owner – “I’ve been paying for my employees’ health‑care credits for five years. The idea that I’ll have to find another way to help them is scary.”
Linda Torres, 45, Low‑Income Resident – “I’ve always relied on that credit. It’s the only thing that keeps my family from being uninsured.”
Dr. Sarah Patel, Family Physician – “From a medical perspective, the credit has been lifesaving. We’ve seen fewer patients with untreated chronic conditions because they can afford regular check‑ups.”
The DOR’s statement also referenced a forthcoming public hearing scheduled for November 15, 2024, where stakeholders can provide input on the transition plan.
Looking Forward
Massachusetts’ decision to end the Health‑Care Credit reflects a broader national conversation about how best to make health insurance affordable. As the state pushes forward with new Medicaid expansion and potential tax‑credit reforms, the challenge will be balancing fiscal responsibility with the health needs of its most vulnerable residents.
For anyone affected by the credit’s cancellation, the WMUR team urges early action:
- Review Current Coverage – Verify whether your plan will still cover you after the credit expires.
- Check for Medicaid Eligibility – If you’re close to the FPL threshold, you may qualify for Medicaid or a Medicaid “bridging” program.
- Explore Low‑Cost Plans – Contact the Marketplace or your insurer to see if you qualify for a lower‑tier plan.
- Consult a Community Advocate – Local nonprofit groups, such as the Massachusetts Health Equity Coalition, offer free counseling on insurance options.
While the shutdown marks the end of a well‑established program, it also opens the door for potentially more sustainable solutions. The upcoming public hearing and subsequent policy proposals will be critical to shaping the next chapter of Massachusetts’ health‑care strategy.
Sources: WMUR article “Analysis: Health‑Care Credits Shutdown” (link), Massachusetts Department of Revenue press release, Massachusetts Health Policy Center poll, Massachusetts Association of Insurance Companies study.
Read the Full WMUR Article at:
[ https://www.wmur.com/article/analysis-health-care-credits-shutdown-111225/69416292 ]
