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ACA Subsidy Expansion Set to Expire as 2026 Premiums Climb and Pressure Builds on Congress

KFF now estimates subsidized Marketplace customers would see average annual payments rise 114% next year if lawmakers do not extend the enhanced credits.

Overview

  • Open enrollment is underway with no extension in place for the pandemic‑era enhanced premium tax credits that end on December 31, 2025.
  • Insurers have filed 2026 rate proposals with a median increase near 18%, reflecting expectations that some healthier enrollees will drop or downgrade coverage.
  • KFF projects average out‑of‑pocket premiums for subsidized enrollees would increase from about $888 in 2025 to roughly $1,904 in 2026 if the credits lapse.
  • Household impacts cited by analysts include about $1,200 more per year for a worker earning $28,000 and over $22,600 more for a 60‑year‑old couple making $85,000.
  • Advocacy groups are urging the Senate to pass an extension as exchanges prepare for rapid updates, while Yahoo Finance notes President Donald Trump has not moved to continue the subsidies.