As the Affordable Care Act (ACA) marketplace opens for enrollment this weekend, millions of Americans are bracing for steep increases in health insurance costs amid a political standoff in Washington over expiring federal subsidies.
Roughly 24 million people currently purchase insurance through the ACA marketplace, with most receiving tax credits that significantly reduce their monthly premiums. Those subsidies, however, are set to expire at the end of the year, threatening to more than double costs for many policyholders.
According to data from the non-profit health research group KFF, average monthly premiums could rise by 114% if the tax credits are not renewed — translating to around $1,000 more per year, or far higher for some families.
Democrats have demanded that the subsidies be extended as part of a broader deal to end the month-long federal government shutdown. Republican leaders, however, have insisted that the issue should be addressed separately, once the government reopens.
For Americans like Stacy Cox, a small business owner from Utah, the prospect of losing the tax credits is financially devastating. Cox and her husband currently pay $495 per month for health insurance. Without the subsidies, their premiums are projected to jump to $2,168 — a staggering 338% increase.
“It’s horrific to actually see real numbers,” Cox said. She added that without affordable coverage, they may be forced to cancel their plan and purchase only limited emergency insurance, which would not cover her autoimmune treatments or her husband’s cardiovascular care. “It’s horribly stressful, because the emergency plan is not going to cover what I need.”
Experts warn that around seven million people could drop their marketplace insurance if the subsidies lapse. Between four and five million of them are expected to lose health coverage entirely, unable to afford alternative plans.
The political deadlock comes as Democrats push not only to extend the ACA tax credits but also to reverse cuts made under former President Donald Trump to Medicaid, the government program that covers low-income Americans, children, and people with disabilities.
While most Republican lawmakers remain opposed to continuing what they call an “Obamacare-era subsidy,” a few conservatives have broken ranks. Representative Marjorie Taylor Greene, a vocal Trump ally, said she was “absolutely disgusted” by the prospect of the subsidies ending.
Meanwhile, the government shutdown has already disrupted other social safety nets. More than 40 million Americans risked losing access to food assistance through the Supplemental Nutrition Assistance Program (SNAP) before a court ruling on Friday ordered the Trump administration to use emergency funds to continue payments.
Former President Trump reacted on Truth Social, saying his legal team would seek clarification on how to “legally fund SNAP” following conflicting court rulings.
