ACA Enrollment Drops as Federal Tax Credits End and State Support Grows

Six states are increasing their efforts to help cover the costs of ACA (Affordable Care Act) plans following a federal funding lapse that led to higher premiums for millions of Americans, Mary Cunningham reported for CBS News last week. “California, Colorado, Connecticut, Maryland, Massachusetts, and New Mexico have all ramped up their state-funded ACA subsidies for 2026 in response to the expiration of federal tax credits at the end of last year, according to Louise Norris, a health policy analyst for Healthinsurance.org.”

Thursday, January 15, was the last day to enroll in ACA insurance plans, as the open enrollment window ended for most people. The Centers for Medicare and Medicaid Services (CMS) reported on January 28 that 23 million people signed up for open enrollment. “It marks a drop-off from the 24.2 million people who enrolled for insurance during the same period in 2025,” Ashleigh Fields wrote for The Hill. “Last year marked four consecutive years of record enrollment for ACA Marketplace plans,” Fields reported. “Gains were credited to enhanced premiums tax credits signed into law under former President Biden through the American Rescue Plan and extended by the Inflation Reduction Act.”

Meanwhile, talks to revive the ACA tax credits may have reached a standstill as Democrats have shifted their focus to negotiating reforms in the Department of Homeland Security’s (DHS) funding bill, Avani Kalra noted for NOTUS.

A recent KFF Health poll found that the cost of healthcare, including health insurance premiums and out-of-pocket expenses, tops the public’s economic anxieties. “A majority (56 percent) of the public says they expect healthcare costs for them and their families to become even less affordable in the coming year,” as reported by KFF Health News.

According to the poll, 67 percent of the public believes Congress made the “wrong choice" by not extending the credits. This view is held by large majorities of Democrats (89 percent) and independents (72 percent). Meanwhile, most Republicans (63 percent), including MAGA supporters (64 percent), believe Congress made the “right choice" by not extending the ACA enhanced premium tax credits. Although the overall approval of the ACA and the Marketplaces remains high, support has waned among Republicans amid recent debates over the ACA's enhanced tax credits.