Expiring Health Subsidies Leave Millions Facing Increased Costs

Thu Jan 01 2026 18:57:28 GMT+0200 (Eastern European Standard Time)

The expiration of enhanced tax credits under the Affordable Care Act has led to significant increases in health insurance premiums for millions of Americans, with calls for legislative action growing as midterm elections approach.

The expiration of enhanced ACA tax credits has resulted in soaring premiums for many Americans. As a 43-day government shutdown looms and with midterm elections approaching, individuals express their frustration over the rising costs of healthcare. Lawmakers debate the future of the subsidies amidst increasing public health costs.

NEW YORK (AP) — Enhanced tax credits that helped reduce health insurance costs for Affordable Care Act enrollees expired overnight, sharply increasing healthcare expenses for millions of Americans at the start of the new year.

Democrats extended a 43-day government shutdown over the issue, with moderate Republicans advocating for solutions ahead of the 2026 elections. President Trump proposed a potential resolution to the crisis, but conservative backlash led him to withdraw it.

Despite these efforts, the subsidies could not be saved, and a forthcoming House vote in January may provide another opportunity, though its success remains uncertain.

The changes impact a broad array of Americans who rely on the ACA for healthcare coverage, including freelancers, small business owners, and those who are self-employed.

As the midterm elections draw near, the rising costs of health insurance and overall affordability remain key concerns for voters.

“It really bothers me that the middle class has moved from a squeeze to a full suffocation,” shared Katelin Provost, a 37-year-old single mother facing increased health care costs. “I’m incredibly disappointed that there hasn’t been more action.”

Rising Insurance Costs for Families

The expired subsidies, initially introduced as a temporary measure during the COVID-19 pandemic, had previously been extended by Democrats to cover a broader range of income levels. With these credits, many enrollees previously paid no premiums or capped their costs at 8.5% of their income.

Now, analysts predict that the average premium costs for over 20 million subsidized enrollees will surge by 114% in 2026. Some families report premium hikes that are doubling or tripling, compounding the financial burden.

Salt Lake City resident Stan Clawson, a freelance filmmaker, saw his monthly premium rise from under $350 to nearly $500. For Provost, monthly costs escalated from $85 to approximately $750.

Potential Decrease in Enrollment

Health experts expect the elimination of the subsidies will drive younger and healthier individuals away from enrolling, threatening the stability of the ACA by leaving only older and sicker members behind. An analysis suggested that nearly 4.8 million could lose coverage due to rising premiums.

As the window for selecting and modifying health plans remains open until January 15, the true toll on enrollment remains to be seen.

Provost hopes Congress will act to restore subsidies but is prepared to sacrifice her coverage, keeping insurance only for her daughter. “I can’t afford to pay for both of us,” she lamented.

Legislative Stalemate and Public Discontent

Following substantial cuts to health care funding last year, Democrats have consistently pushed for the subsidies' renewal. However, the Senate rejected two partisan rescue plans in December—one from Democrats and another from Republicans advocating for health savings accounts.

While some Republicans broke ranks to advocate for a vote on the subsidies, momentum appears stalled as lawmakers fail to address the root causes of escalating health costs. “Both parties need to get to the root cause, and no political party ever does that,” stated Chad Bruns, an ACA enrollee from Wisconsin.