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Enhanced ACA Subsidies Expire, Driving Sharp 2026 Premium Increases

A House vote on a three-year extension is planned for early January, with Senate approval uncertain.

Overview

  • Roughly 22 million marketplace enrollees lost enhanced tax credits at midnight on Jan. 1, triggering average out-of-pocket premium hikes of about 114% in 2026, according to KFF.
  • Independent analyses project that roughly 3 to 5 million people could drop coverage this year if the enhanced credits are not restored.
  • After four House Republicans joined a discharge petition, leaders expect a floor vote on a three-year extension in mid-January, while bipartisan Senate talks continue and a retroactive fix remains possible.
  • At least a dozen states are working on mitigation measures, and New Mexico is the only state so far to pledge covering the full value of the lapsed subsidies.
  • Hospitals and physicians face significant financial risk, with one estimate forecasting more than $32 billion in lost provider revenue without renewed assistance, as some consumers shift to leaner plans during open enrollment through Jan. 15 in most states.