Millions Face Soaring ACA Premiums in 2026 as Key Subsidies Near Expiration
Millions Face Soaring ACA Premiums in 2026 as Key Subsidies Near Expiration
Millions of Americans relying on Affordable Care Act (ACA) health plans are on the brink of significant financial strain in 2026, as insurers propose substantial premium hikes and critical federal subsidies are set to expire. Initial filings for the 2026 plan year show a median national rate increase of 15%, a sharp jump from recent years. This surge is driven by rising medical costs and, crucially, the uncertainty surrounding the enhanced, COVID-era tax credits, which are slated to lapse at the end of December 2025.
If Congress fails to act, policy experts estimate the average out-of-pocket cost for consumers could skyrocket by over 75%, with some states potentially seeing premiums double. This ‘one-two punch’ of higher base rates and reduced assistance threatens to leave many unable to afford coverage. JoAnn Volk, co-director of the Center on Health Insurance Reforms at Georgetown University, warns of impending ‘sticker shock,’ stating, ‘The out-of-pocket change for individuals will be immense, and many won’t actually be able to make ends meet and pay premiums, so they will go uninsured.’
The looming expiration of these subsidies, first introduced under the American Rescue Plan and extended by the Inflation Reduction Act, would revert assistance levels to less generous pre-pandemic standards. This would notably impact higher earners, who could lose all subsidy eligibility. The health insurance industry, through groups like AHIP, is actively lobbying lawmakers to extend the tax credits, emphasizing their role in preventing ‘skyrocketing cost increases for millions of Americans.’
Discussions are reportedly ongoing in Congress regarding potential solutions to mitigate the impact, but any such efforts face political hurdles. Consumers will discover their final 2026 premium prices in the fall, ahead of the ACA’s open enrollment period beginning November 1. The coming months are critical as lawmakers decide the fate of health care affordability for millions.
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