The US House and Senate have concluded their final votes for the year without passing a deal to extend federal healthcare subsidies, resulting in a significant increase in health insurance costs for millions of Americans starting January 1. The deadline for selecting health plans for 2026 has passed, and consumers who rely on Affordable Care Act (ACA) coverage will see their premiums climb substantially. According to Jessica Altman, executive director of Covered California, middle-income families will be hit the hardest, with some facing an average increase of $500 per month.
The enhanced tax credits that have been in place will expire on December 31, causing the average monthly premium to jump from $74 to $158. This increase will affect millions of Americans, with some facing premium hikes of over $1,000 per month. Representative Kevin Mullin (D-San Mateo) expressed frustration with the lack of urgency from Congress, stating that his office has already received calls from constituents bracing for massive hikes.
The expiration of the subsidies is not only a concern for individuals but also for hospitals and clinics, which may see an increase in uninsured patients unable to pay for their care. This could impact the sustainability of these healthcare providers. Representative Kevin Kiley (R-Roseville) echoed the frustration, stating that the leadership of both parties is more focused on blaming each other than working together to solve the problem.
The failure to extend the subsidies is expected to have far-reaching consequences, including increased healthcare costs, reduced access to care, and a greater burden on healthcare providers. As the new year begins, millions of Americans will be faced with the reality of higher healthcare costs, and it remains to be seen how Congress will address this issue in the future. With the current gridlock in Congress, it is unclear when or if a solution will be found, leaving many to wonder how they will afford the increased costs of their healthcare.