The cost of health insurance premiums on Healthcare.gov is expected to rise by an average of 30% next year, affecting approximately 17 million Americans. This increase is attributed to the expiration of enhanced Affordable Care Act (ACA) health insurance subsidies, which were temporarily extended in 2022 during the COVID-19 pandemic. The subsidies, set to end on January 1, have been a point of contention between Democratic and Republican lawmakers.
Democrats want to continue the expanded subsidies to maintain affordable insurance, while Republicans oppose the extension, citing that the subsidies were never meant to be permanent. Many Republicans aim to revise the entire ACA, rather than just extending the current financial help. The stalemate has resulted in a government shutdown, with Democrats withholding support for funding bills until Republicans agree to extend the subsidies.
The impending expiration of the subsidies has sparked concern among Americans who rely on government tax credits to pay for their health insurance. A study by the Kaiser Family Foundation found that if the enhanced premium tax credits under the ACA end, monthly health insurance premiums could more than double in 2026. This would lead to many people paying two to three times more for their health insurance, potentially forcing them to switch to cheaper plans with less coverage or drop coverage altogether.
One couple, Doug and Shadene Butchart, rely on the enhanced premium tax credits to afford their Gold plan, which costs $1,273.82 per month. They receive $670 in tax credits, leaving them to pay $603.82 monthly. Without the subsidies, they fear they will be unable to afford insurance, which would have severe consequences for Shadene, who has ALS and requires extensive medical care.
The debate over the ACA subsidies reflects the broader political standoff in Washington, with Democrats pushing to maintain the enhanced tax credits and Republicans resisting the extension. The outcome of this impasse could have far-reaching consequences for the health care coverage of millions of Americans next year. If the subsidies expire, many people may face significant increases in their health insurance premiums, potentially leading to reduced coverage or even loss of insurance altogether.