Congressional lawmakers questioned health insurance chief executives this week regarding rising premiums and affordability concerns under the Affordable Care Act (ACA), as the Biden administration and Congress grapple with potential disruptions to health coverage for millions of Americans.
The scrutiny comes as enhanced ACA premium tax credits, implemented during the COVID-19 pandemic, are set to expire at the end of 2025. Without congressional action, the Congressional Budget Office (CBO) estimates a significant decrease in enrollment in subsidized exchange coverage, potentially leaving hundreds of thousands without affordable health insurance options. A bipartisan bill, the “Bipartisan Health Insurance Affordability Act,” introduced in December 2025 by Representative Brian Fitzpatrick and several colleagues, aims to avert this crisis by extending the enhanced tax credits, but its future remains uncertain.
The Biden administration, meanwhile, continues to advocate for broader healthcare reforms, including measures to lower prescription drug prices. In January 2026, President Donald J. Trump called on Congress to enact “The Great Healthcare Plan,” which aims to build on previous actions to reduce costs for American patients, specifically through codifying “Most-Favored-Nation” deals to secure lower drug prices comparable to those paid in other countries. The plan also seeks to increase the availability of verified safe pharmaceutical drugs for over-the-counter purchase, bolstering price transparency and competition.
Experts suggest many Americans are underinsured, particularly when relying solely on employer-sponsored life insurance. While roughly 55% of working adults have life insurance through their jobs, the coverage often amounts to only one or two years of salary, potentially insufficient to maintain a family’s lifestyle in the event of a death. Financial planners recommend supplementing employer coverage with individual term life policies.
Beyond basic coverage, financial advisors are increasingly discussing life insurance as a tool for long-term care planning. With the costs of assisted living facilities averaging $5,900 per month in 2024, many Americans are unprepared for these expenses. Hybrid life insurance policies with long-term care riders allow policyholders to access a portion of the death benefit to cover care costs, with the remaining benefit still available to beneficiaries.
For high-wealth households, permanent life insurance policies, which build cash value over time, are presented as a flexible financial tool for retirement funding or educational expenses. These policies offer tax advantages, including tax-free death benefits and potential tax-free withdrawals or loans against the accumulated cash value.
However, the need for life insurance diminishes in certain circumstances. Retirees with no remaining income to replace, individuals without dependents, and older Americans may find the cost of novel policies prohibitive or unnecessary.
Congress recently completed its package of appropriations legislation for fiscal year 2026, but the fate of extending the ACA’s enhanced premium tax credits remains unresolved. Lawmakers are expected to continue debating healthcare policy in the coming weeks, with the potential for further legislative action or inaction impacting the affordability and accessibility of health insurance for millions of Americans.
