ACA Subsidies Expire, Boosting Premiums for Millions

Millions of Americans face sharply higher health insurance premiums in 2026 after enhanced tax credits for Affordable Care Act enrollees expired at the start of the year, ending a temporary relief program that had lowered costs for more than 20 million people nationwide.

The subsidies, originally enacted in 2021 to assist during the COVID-19 pandemic, allowed many low-income enrollees to receive coverage without premiums and capped costs for higher earners at 8.5 percent of their income. Eligibility also extended to more middle-class individuals. Democrats, who controlled Congress at the time, prolonged the program until January 1, 2026, but efforts to renew it faltered amid partisan disagreements. The expiration coincides with broader rises in U.S. health care expenses, exacerbating out-of-pocket costs for many plans.

The change primarily impacts those without employer-sponsored insurance, Medicaid or Medicare, including self-employed workers, small business owners, farmers and ranchers. According to an analysis by the health care research nonprofit KFF, subsidized enrollees will see average premium increases of 114 percent this year. Some families report costs doubling or...