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30m ago

Government Shuts Down as Standoff Over ACA Subsidies Blocks Funding Deal

A new KFF analysis warns subsidized enrollees could see a 114% average premium jump in 2026 if enhanced credits lapse, increasing pressure before open enrollment.

People sign up for health insurance through Covered California at the Asian Health Services offices in Oakland in January 2017. Nearly 1.7 million Californians could soon face steep increases in Covered California premiums if Congress does not extend federal subsidies.
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Overview

  • Democrats insist any stopgap include an extension of enhanced Affordable Care Act premium tax credits, while Republican leaders reject tying the policy to reopening the government.
  • KFF estimates average annual payments for subsidized marketplace customers would rise from $888 in 2025 to about $1,904 in 2026, with proposed insurer rate hikes near 18% compounding the hit.
  • Roughly 22 million people receive the enhanced credits after marketplace enrollment swelled to nearly 24 million, and state exchanges say decisions are needed by Nov. 1 to avoid consumer disruption.
  • Covered California says about 1.67 million enrollees receive enhanced credits and warns up to 400,000 could be priced out if the federal aid ends, with larger increases projected in high-cost regions.
  • Republicans are divided, with conservatives urging the credits expire and others — including Vice President JD Vance and some GOP lawmakers — open to talks once government operations resume; fiscal watchdog CRFB pegs a Democratic counterproposal at about $1.5 trillion over a decade.