“Most of the 24 million people in Affordable Care Act (ACA) health plans face a potential one-two punch next year — double-digit premium increases, along with a sharp drop in the federal subsidies that most consumers depend on to buy the coverage, also known as Obamacare,” Julie Appleby reported for KFF Health News on July 18.
“Insurers want higher premiums to cover the usual culprits — rising medical and labor costs and usage — but are tacking on extra percentage point increases in their 2026 rate proposals to cover effects of policy changes advanced by the Trump administration and the Republican-controlled Congress,” Appleby explained. “One key factor built into their filings with state insurance departments: uncertainty over whether Congress allows more generous, covid-era ACA tax subsidies to expire at the end of December.”
“The out-of-pocket change for individuals will be immense, and many won’t actually be able to make ends meet and pay premiums, so they will go uninsured,” said JoAnn Volk, co-director of the Center on Health Insurance Reforms at Georgetown University, to KFF.
“Especially if the higher subsidies expire, insurance premiums will be among the first financial pains felt by healthcare consumers after policy priorities put forward by President Donald Trump and the GOP,” Appleby noted. “Without action, the extra subsidies will expire at the end of this year, after which the tax credits will revert to less generous pre-pandemic levels.” “If the subsidies expire, policy experts estimate, the average amount people pay for coverage could rise by an average of more than 75 percent. In some states, ACA premiums could double.”
Consequently, enrollment numbers could drop.
About the Author
Pietje Kobus
Pietje Kobus has an international background and experience in content management and editing. She studied journalism in the Netherlands and Communications and Creative Nonfiction in the U.S. Pietje joined Healthcare Innovation in January 2024.