Moore States Maryland Residents Face Rising Health Insurance Premiums Amidst Federal Shutdown

ANNAPOLIS, MD — Governor Wes Moore visited the Montgomery County Department of Health and Human Services in Silver Spring to highlight Maryland’s commitment to supporting residents impacted by the ongoing federal government shutdown. The shutdown, attributed to inaction by the Trump-Vance Administration and Republicans in Congress, is projected to cause significant increases in healthcare premiums for many Marylanders. Governor Moore emphasized the state’s efforts to mitigate these financial burdens and urged federal officials to resolve the crisis.

The Maryland Insurance Administration has approved average health insurance premium rate increases of 13.4% for 2026, stemming from the anticipated expiration of federal tax credits enacted by the Biden Administration in 2021. These federal tax credits have been instrumental in maintaining affordable coverage for many Marylanders. The expiration of these credits could lead to policy lapses and further drive up the cost of health insurance for those enrolled through Maryland Health Connection. In 2025, a record 247,000 Marylanders were enrolled in marketplace coverage, a substantial increase from previous years. Approximately 190,000 of these individuals directly benefit from the enhanced tax credits and could face an average premium increase of 95% if the credits are not extended. Residents utilizing Maryland Health Connection are expected to begin receiving notifications regarding these rate adjustments in the coming week.

In response to potential federal inaction and to help lower costs for families, Governor Moore and the Maryland General Assembly expanded the State-Based Insurance Subsidies Program during the 2025 legislative session. This program aims to reduce premiums for individuals purchasing insurance through Maryland Health Connection with incomes below 400% of the federal poverty level. Additionally, Maryland Health Connection has launched its updated “Get an Estimate” tool for 2026, enabling residents to compare health plans and potential savings.

The federal shutdown’s repercussions extend beyond healthcare premiums. The federal government is a major employer in Maryland, with a significant number of federal jobs located within the state. Past government shutdowns have resulted in substantial wage losses for Maryland residents, and the current shutdown poses a risk to federal employees, contractors, and the broader state economy. The Moore-Miller Administration is implementing a comprehensive support system for impacted federal employees and other workers, offering services such as job search assistance, career guidance, and unemployment insurance. The state also plans to continue operating essential federal programs like Medicaid, SNAP, and WIC, contingent on eventual reimbursement from the federal government. The duration of the shutdown and the federal government’s commitment will be critical in determining the sustained operation of these vital services.

Article by Mel Anara, based upon information from the Office of Governor Wes Moore

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