ACA Enrollees Face Premium Increases as Enhanced Subsidies Expire
Millions of Americans enrolled in Affordable Care Act plans are bracing for significant premium hikes in 2026 due to the expiration of enhanced federal subsidies.
As the enhanced premium tax credits under the Affordable Care Act (ACA) are set to expire at the end of 2025, millions of Americans are preparing for substantial increases in their health insurance premiums. These subsidies, introduced during the COVID-19 pandemic and extended through 2025, have significantly reduced costs for enrollees. Without congressional action to extend them, premiums are projected to more than double on average in 2026.
The Congressional Budget Office estimates that the expiration of these subsidies could lead to approximately 4 million people losing their health insurance coverage. The impact will vary by region; for instance, a 60-year-old couple earning $85,000 annually could see their premiums increase by 693% in Wyoming and 654% in parts of West Virginia.
In response, some ACA enrollees are exploring alternative insurance options, such as short-term plans. However, these plans often come with significant limitations, including exclusions for preexisting conditions and lack of coverage for essential health benefits. Insurance experts caution that while these plans may offer lower premiums, they are not suitable for everyone and require careful consideration.
The deadline for selecting a health plan for 2026 is January 15, with coverage beginning February 1. As this date approaches, consumers are advised to thoroughly review their options and understand the potential changes in costs and coverage.