Experts warn of rising insurance bills as the “Care Act” nears its end
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There’s a storm quietly gathering in the world of healthcare, and most Americans won’t feel it until the bills start arriving.
It’s the kind of shift that can turn stability into strain overnight, stretching family budgets to the breaking point.
Behind the calm headlines and political debates, a clock is ticking toward a change that could redefine what “affordable care” really means. As the end of the year draws closer, that countdown is becoming impossible to ignore.
Millions of Americans are bracing for record-high insurance bills as the enhanced subsidies of the Affordable Care Act approach their expiration date.
The expanded financial assistance that has kept premiums within reach for many households is set to vanish at the end of 2025 unless Congress acts fast.
With open enrollment beginning November 1, families preparing for next year’s coverage could be blindsided by the jump in costs.
The financial hit could be particularly steep for low- and middle-income earners who have depended on those subsidies to keep their insurance affordable.
The Affordable Care Act, enacted in 2010, was meant to expand coverage and lower costs through subsidies and state marketplaces. Congress temporarily enhanced those subsidies through the American Rescue Plan and later the Inflation Reduction Act, but those measures were never made permanent.
As the deadline looms, Democrats in Congress are pushing to extend the benefits, warning of devastating consequences if they expire.
Insurance companies, however, have already finalized their 2026 premium rates, meaning the impact of any last-minute extension won’t be felt until the following year.
According to KFF data, premiums are expected to rise by an average of 18% nationwide, with many insurers blaming the anticipated end of the enhanced tax credits. Rising drug and hospital costs, coupled with general inflation, are also driving the increases.
Also read: Taxpayers stand to save $30 billion with Medicaid reform
“The bottom line is that over 90% of marketplace enrollees are currently getting enhanced premium tax credits, which have reduced the amount of their income that they’re expected to contribute to premiums,” Sabrina Corlette, a research professor at Georgetown University, told News Nation.
Without an extension, she warned, that level of contribution “is going to be much, much higher, up and down the income scale.”
The financial toll could be severe. Jessica Altman, executive director of Covered California, told News Nation that consumers’ monthly payments are expected to increase on average by 97% in 2026.
KFF estimated that over 20 million subsidized enrollees will face an average premium hike of 114% if the subsidies expire.
Those earning between $15,000 and $20,000 annually could lose access to “zero premium” plans and instead spend up to 3% of their income on coverage.
For someone earning $28,000 a year, that means a jump from $27 to more than $130 per month for a benchmark plan.
The pain won’t be evenly distributed across the country. States that chose not to expand Medicaid—like Texas, Florida, and Georgia—are expected to see the hardest hits.
Residents in those states, already ineligible for Medicaid, relied more heavily on ACA subsidies to bridge the gap. Without those supports, millions could be left uninsured or forced into plans that are far beyond their budgets.
Also read: Is your healthcare at risk? Millions could lose coverage if Medicaid cuts become law
As lawmakers argue over the federal budget and the future of healthcare subsidies, the pressure is mounting.
The looming expiration date is tangled in political negotiations tied to the ongoing government funding fight.
Insurers warn that if healthy people drop out due to high costs, premiums will only rise faster for those who remain.
For now, Americans are left waiting—and worrying—about what the new year will bring for their healthcare costs.
Read next:
With the clock ticking and political negotiations at a standstill, Americans are left to brace for what could be a costly shift in healthcare. Families may soon have to make tough choices about coverage, care, and spending as premiums rise across the board. Will Congress act in time to prevent a nationwide insurance shock? Share your thoughts below—are you prepared for what 2026 might bring to your medical bills?
It’s the kind of shift that can turn stability into strain overnight, stretching family budgets to the breaking point.
Behind the calm headlines and political debates, a clock is ticking toward a change that could redefine what “affordable care” really means. As the end of the year draws closer, that countdown is becoming impossible to ignore.
Millions of Americans are bracing for record-high insurance bills as the enhanced subsidies of the Affordable Care Act approach their expiration date.
The expanded financial assistance that has kept premiums within reach for many households is set to vanish at the end of 2025 unless Congress acts fast.
With open enrollment beginning November 1, families preparing for next year’s coverage could be blindsided by the jump in costs.
The financial hit could be particularly steep for low- and middle-income earners who have depended on those subsidies to keep their insurance affordable.
Experts warn of rising insurance bills as the “Care Act” nears its end. Image source: Marek Studzinski / Unsplash
The Affordable Care Act, enacted in 2010, was meant to expand coverage and lower costs through subsidies and state marketplaces. Congress temporarily enhanced those subsidies through the American Rescue Plan and later the Inflation Reduction Act, but those measures were never made permanent.
As the deadline looms, Democrats in Congress are pushing to extend the benefits, warning of devastating consequences if they expire.
Insurance companies, however, have already finalized their 2026 premium rates, meaning the impact of any last-minute extension won’t be felt until the following year.
According to KFF data, premiums are expected to rise by an average of 18% nationwide, with many insurers blaming the anticipated end of the enhanced tax credits. Rising drug and hospital costs, coupled with general inflation, are also driving the increases.
Also read: Taxpayers stand to save $30 billion with Medicaid reform
“The bottom line is that over 90% of marketplace enrollees are currently getting enhanced premium tax credits, which have reduced the amount of their income that they’re expected to contribute to premiums,” Sabrina Corlette, a research professor at Georgetown University, told News Nation.
Without an extension, she warned, that level of contribution “is going to be much, much higher, up and down the income scale.”
The financial toll could be severe. Jessica Altman, executive director of Covered California, told News Nation that consumers’ monthly payments are expected to increase on average by 97% in 2026.
KFF estimated that over 20 million subsidized enrollees will face an average premium hike of 114% if the subsidies expire.
Those earning between $15,000 and $20,000 annually could lose access to “zero premium” plans and instead spend up to 3% of their income on coverage.
For someone earning $28,000 a year, that means a jump from $27 to more than $130 per month for a benchmark plan.
The pain won’t be evenly distributed across the country. States that chose not to expand Medicaid—like Texas, Florida, and Georgia—are expected to see the hardest hits.
Residents in those states, already ineligible for Medicaid, relied more heavily on ACA subsidies to bridge the gap. Without those supports, millions could be left uninsured or forced into plans that are far beyond their budgets.
Also read: Is your healthcare at risk? Millions could lose coverage if Medicaid cuts become law
As lawmakers argue over the federal budget and the future of healthcare subsidies, the pressure is mounting.
The looming expiration date is tangled in political negotiations tied to the ongoing government funding fight.
Insurers warn that if healthy people drop out due to high costs, premiums will only rise faster for those who remain.
For now, Americans are left waiting—and worrying—about what the new year will bring for their healthcare costs.
Read next:
- Millions set to lose government health coverage after new tax law takes effect
- Nearly 1.8 million Texans have lost Medicaid coverage—here’s what that means for health care access
