Health Premiums Will Skyrocket: What You Need to Know
What’s Happening
The U.S. government has shut down due to failure of Congress to pass a funding bill. Central issues: ACA subsidy cuts and rising Medicaid strain.
Why It Matters
At stake: Enhanced premium tax credits under ACA that help 22 million people get affordable health coverage. Without them, costs could double.
Premium Hikes
If ACA enhanced subsidies expire end-of-2025, marketplace health plan premiums may increase by more than 100%, per KFF analysis.
Medicaid Cuts
A recent spending bill includes over $1 trillion in proposed Medicaid cuts over the next decade. New work requirements and funding shifts could make access harder for low-income Americans.
Who’s Affected
Low- & middle-income families, people relying on ACA marketplace plans, states with non-expanded Medicaid will feel impact most. Premium tax credit loss = big risk.
Annual Costs
Average ACA marketplace subscriber currently pays ~$888/year. Without subsidies, that could rise to ~$1,900/year in 2026.
Why It Escalated
Republican leadership wants funding without ACA subsidy extension. Democrats demand subsidies stay & Medicaid cuts reversed. Federal shutdown triggered. :contentReference[oaicite:6]{index=6}
What Could Happen
Loss of coverage for millions, surging out-of-pocket costs, insurers dropping out of exchanges. Many may simply go without insurance. :contentReference[oaicite:7]{index=7}
Possible Fixes
Congress could extend the premium tax credits, reverse Medicaid cuts, or pass emergency funding that protects healthcare subsidies. Deadlines loom. :contentReference[oaicite:8]{index=8}
What You Can Do
If you buy ACA insurance: check your plan notices, explore state assistance, budget for higher premiums, contact local reps. Stay informed before Jan 2026. (End)