Legislature passes Health Insurance Tax Credit Resolution, to be forwarded to Alaska delegation and Congress

Juneau, Alaska - On Monday, May 12, the Alaska Senate gave final passage for House Joint Resolution No. 9 (HJR 9), a measure urging Congress to extend enhanced Affordable Care Act premium tax credits that help thousands of Alaskans afford health insurance. The resolution, introduced in the House by Representative Genevieve Mina, will now be formally submitted to Alaska's Congressional delegation.

Speaking on the Senate floor, Senator Forrest Dunbar stressed the urgent need for federal action to prevent health care costs from spiking for Alaska families, small businesses, and self-employed individuals.

"Without these enhanced tax credits, health care costs could multiply six or seven times for Alaskan families," Dunbar warned. "Middle-class Alaskans who don't qualify for traditional subsidies are already paying some of the highest premiums in the nation. Letting these credits expire would destabilize our insurance market, increase Medicaid costs to the state, and put health coverage out of reach for thousands." Enhanced tax credits-first expanded under the American Rescue Plan Act and later extended by the Inflation Reduction Act-are set to expire at the end of 2025 without further congressional action.

These credits cap premiums based on income, expanding eligibility to more working families and small businesses.

Without them, ACA marketplace premiums in Alaska could rise by an average of 63 percent, according to the Urban Institute.

Alaskans would lose more than $287 million in annual tax relief, driving up the uninsured rate, increasing uncompensated care, and putting additional strain on the state Medicaid program.

"This resolution is about protecting working families and entrepreneurs with no additional cost to the state," said Representative Mina during House debate. "Failure to act will push many Alaskans out of the marketplace altogether, especially in our rural and underserved communities." The resolution also highlights risks to Alaska's innovative reinsurance program, which relies on stable premium levels to function effectively. Senator Dunbar noted that over 80 percent of marketplace enrollees in Alaska qualify for premium subsidies, making continuation of these credits essential to maintaining access to affordable coverage.

HJR 9 now moves to Alaska's federal delegation with a clear, bipartisan mandate: act swiftly to extend or make permanent these vital tax credits and protect affordable health care for Alaskans.