RICHMOND, Va. — Virginia state Democrats are proposing using state funds to help Virginians afford health insurance premiums after federal tax credits expired at the end of last year.

The director of Virginia’s Insurance Marketplace said that expiration has led to tens of thousands of Virginians losing health insurance coverage through the state’s Affordable Care Act marketplace this year and warns it could grow to 100,000 without intervention.

“Our customers are Virginians who don’t have another option for health insurance coverage,” said director Keven Patchett.

Patchett said when open enrollment closed on Jan. 30, 2026, 19,000 fewer Virginians had signed up compared to the previous year (389,000 compared to 370,000).

He added since then an additional 25,000 have lost coverage — which is three times more than the number who lost coverage during the same time period last year.

When asked if the loss in federal tax credits was the reason behind the drop, Patchett said, “It’s the only factor that has changed.”

Patchett made those remarks Wednesday at a press conference focused on options for helping Virginians impacted by the credits ending.

Among those feeling the impact is Lester Johnson, who owns Mama J’s restaurant in Richmond.

Johnson still has his marketplace coverage, but his monthly premiums for his family of 3 have risen from $650 to around $1,000 — an increase of nearly 54%.

“This is really affecting people’s ability to, kind of, manage their budgets and their families livelihoods,” Johnson said.

Johnson attended Wednesday’s State of the Union address as the guest of Congresswoman Jennifer McClellan, a Democrat who represents Richmond. His presence was intended to highlight the need for Congress to reinstate the tax credits.

“It needs to be definitely as much energy and conversation around it as some of these other policy decisions that have been made recently,” Johnson said.

The U.S. House has voted to extend the credits for 3 years, with 17 Republicans joining Democrats in support of the measure, including Virginia Republican Congressman Rob Wittman (VA-01). The U.S. Senate has not passed the extension.

“I have heard from Virginians about the cost of healthcare and the importance of expanding access for hardworking families,” Wittman said in a statement. “In January, I voted for a short-term extension of the enhanced premium tax credits not as an endorsement of the current system, but as a bridge to give Congress the time to pursue meaningful reforms. I will continue to work with my colleagues in both chambers and across the aisle to address the cost of healthcare and push for reforms that put patients back in charge.”

With federal action still uncertain, Virginia Democrats are proposing to use state budget funds to replace the tax credits for at least one year.

The House has put forward an $79 million proposal, while the state Senate is proposing $200 million.

“It’s our responsibility as Democrats to step up and this is what our budget amendments do,” Del. Rodney Willett, a Democrat representing Henrico County, said of the House proposal.

“Both budgets emphasized the need to fill gaps in healthcare. So how we go about that and what the numbers actually end up being still a few weeks away,” Sen. Barbara Favola, a Democrat representing Fairfax, said.

Patchett said that the number of Virginians who could loss coverage on the state marketplace without help could reach 100,000, which he based off of the increase that was seen when the federal tax credits were expanded in 2021.

“And that was nearly 100,000 Virginians who benefited from that expansion. And so our concern has been that we’re going to see a number very close to that 100,000 drop coverage. And the indicator suggests that that may still happen,” Patchett said.

Patchett said that regardless of the amount lawmakers agree on, the exchange has the authority to create a special enrollment period to help Virginians who have lost or dropped their coverage.

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