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Enhanced ACA Subsidies Lapse, Sending Marketplace Premiums Soaring on New Year’s Day

A House vote on a three-year extension is expected in early January, with Senate prospects uncertain.

Overview

  • Roughly 22 million Affordable Care Act enrollees lose enhanced tax credits as of Jan. 1, with KFF estimating out-of-pocket premiums will rise about 114% on average this year.
  • Analysts warn several million could become uninsured without a fix, with projections generally clustering around 3 to 5 million people losing coverage.
  • House Democrats, joined by a handful of Republicans via a discharge petition, plan an early January vote on a three-year extension after a similar measure failed in the Senate.
  • Republican leaders and President Donald Trump have pushed alternative approaches, such as routing funds directly to consumers or expanding health savings accounts, which face policy and political hurdles.
  • Some states are moving to blunt the impact—New Mexico is cited as covering all expiring aid—while providers warn of strain, including an estimate of more than $32 billion in lost revenue without restored assistance.