A significant change in budget at the state and federal levels is expected to impact families financially, particularly in regards to healthcare. Specifically, premiums on marketplace insurance plans are anticipated to rise starting in 2026, as key tax credits expire at the end of 2025. This expiration will lead to higher costs for health coverage, leaving many to wonder how they will afford it.
According to Gbenga Ajilore, Chief Economist for the Center on Budget and Policy, the expiration of tax credits will have a notable impact on families. For instance, in Colorado, a family of four with a household income of $80,000 will see their monthly premiums increase from $260 to $560. Similarly, a single adult earning $50,000 per year will experience a rise in monthly premiums from $270 to $420.
Ajilore highlights that individuals who rely on marketplace insurance plans are “at the mercy of the system,” with limited options for affordable health coverage. Unless they secure a job that offers employer-provided healthcare, they may be forced to choose between paying higher premiums or forgoing health coverage altogether. Furthermore, hospitals with higher uncompensated care costs will pass these expenses on to individuals with health coverage, resulting in increased insurance premiums.
The impending rise in healthcare costs is a pressing concern, as families will need to make difficult decisions about how to allocate their resources. With the tax credits set to expire, many will face significant financial burdens, potentially forcing them to sacrifice other essential expenses to maintain their health coverage. As the changes take effect, it is crucial for families to explore their options and plan accordingly to mitigate the impact of these increased costs.