Arizona Senator Ruben Gallego (D-AZ) has issued an open letter to the state’s health insurance companies, urging them to immediately notify consumers about the possibility of significant premium increases if Affordable Care Act (ACA) premium tax credits expire at the end of this year.
Gallego emphasized that insurance companies—covering more than 24 million Americans through the ACA marketplace—have a responsibility to provide timely notices about upcoming changes in premiums. Traditionally, these notices are sent out in early October, but this year there has been a disturbing delay, leaving many beneficiaries unaware of what may happen to their coverage in 2026.
According to Gallego, around 13 million Americans, including 370,000 Arizonans, rely on ACA premium tax credits to make their health coverage affordable. If these credits are not extended, premiums could rise by an average of 75%, representing an increase of $780 annually per person and $842 for those in rural Arizona. Such hikes could force over 100,000 Arizonans—including 35,000 children—to lose their health insurance.
“The situation is clear,” Gallego wrote. “If the tax credits are not extended, premiums will rise sharply, placing enormous financial strain on families. Insurers must take immediate action to educate their customers about what these increases mean, especially as open enrollment has already begun in many states.”
Gallego also pointed out that insurers have no justification for delaying notifications. As of October 6, CMS Administrator Dr. Mehmet Oz confirmed that rates for 2026 are locked, meaning the data needed to inform consumers is already available.
“The delay in providing premium notices is a disservice to your members,” Gallego concluded. “Failing to extend ACA tax credits will lead to catastrophic premium increases, and consumers deserve to know what’s at stake.”
