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Health Insurance Costs May Soar for Millions Unless Congress Acts

Washington D.C. – A looming deadline threatens to dramatically increase health insurance costs for millions of Americans who rely on the Affordable Care Act (ACA) marketplaces.Unless Congress acts to extend expiring tax credits,enrollees could see their premiums more than double in 2026,potentially leading to a surge in the nation’s uninsured population.

The Stakes Are High: Potential Premium Hikes

The temporary tax credits, initially authorized in 2021 as a response to the economic fallout of the Covid-19 pandemic, have been instrumental in making ACA plans more affordable. These subsidies lower monthly premiums for a broad range of income brackets. Without their extension, the financial burden on consumers will increase significantly. Projections indicate that the impact will vary geographically,but many individuals and families could face ample premium increases.

Covered California, the state’s ACA marketplace, has already begun preparing to notify enrollees of potential cost increases. the state agency is currently holding back on sending official notices, hoping for a resolution in Washington, but has drafted two versions of the letters: one with and one without the extended tax credits.

Political Gridlock Complicates the Issue

The fate of these tax credits is entangled in broader political battles within Congress. While some Republicans, including Representative Marjorie Taylor Greene of Georgia, have expressed concern about the potential premium hikes, leadership remains focused on government funding negotiations. Democrats are insisting on an extension of the subsidies as part of any deal to avert a government shutdown. President Trump has also hinted at a potential compromise,but the path forward remains uncertain.

Impact Across States: A growing Divide

The effect of the expiring credits will not be uniform across the country. States that have not expanded Medicaid under the ACA, such as Florida, Texas, and Georgia, are expected to be disproportionately affected. These states have seen a large influx of enrollees into the ACA marketplaces, making them notably vulnerable to premium increases.

Here’s a comparison of ACA marketplace enrollment growth from 2020 to 2025:

State	Enrollment Growth (2020-2025)
Florida	+150% (4.7 million enrollees)
Texas	+200% (almost 4 million enrollees)
Georgia	+200% (1.5 million enrollees)
California	+125% (nearly 2 million enrollees)

“Did You Know?” California has allocated $190 million in state funds to help offset some of the potential premium increases, but this amount is significantly less than the $2.5 billion currently provided by the federal tax credits.

What’s at Risk: Access to care and Financial Security

Advocates warn that the loss of these subsidies will have far-reaching consequences, potentially leading to increased medical debt and a decline in health insurance coverage. Individuals and families may be forced to forgo necessary care, leading to poorer health outcomes. The situation is especially concerning for rural residents and those with moderate incomes.

“Pro Tip:” If you currently receive subsidies through the ACA marketplace, stay informed about the latest developments in Congress and be prepared to reassess your options during open enrollment.

Jessica Altman,executive director of Covered California,emphasized the urgency of the situation. “People need to be able to shop for health plans,” she said. “We are at a pivotal moment.”

Do you believe Congress should prioritize extending these health insurance subsidies? What alternatives could be explored to ensure affordable healthcare access for all Americans?

Understanding the Affordable Care Act and Subsidies

The Affordable Care Act, signed into law in 2010, aimed to expand health insurance coverage to more Americans. A key component of the ACA is the provision of premium tax credits, which help eligible individuals and families afford health insurance purchased through the ACA marketplaces. These credits are based on income and household size, and they reduce the monthly premium cost. The recent tax credits, extended during the pandemic, expanded eligibility and increased the amount of assistance available.

Frequently Asked Questions About ACA tax Credits