End of COVID-Enhanced ACA Tax Credits Raises Insurance Costs in 2026

The expiration of COVID-era enhanced tax credits for Affordable Care Act (ACA) plans is set to significantly increase insurance costs for many Americans in 2026. This change is forcing some consumers to choose lower-tier plans with higher deductibles or go without insurance altogether. For example, a Wisconsin couple will face a premium increase from $2 to $1,600 per month and will be forced to move from a gold-level plan to a bronze plan with a $15,000 deductible. Their new out-of-pocket maximum could amount to nearly half their income, raising concerns about financial vulnerability if medical needs arise. Similarly, a family of four in Michigan who has relied on ACA coverage since 2014 will likely forgo insurance as their premium is expected to increase from $500 to at least $700 per month, which is unaffordable given their income and expenses. The father expressed the stress and anxiety of being uninsured but noted their financial inability to maintain coverage. In Nevada, a single mother plans to pay increased premiums initially but will reconsider coverage if Congress does not extend the subsidies. Her monthly premium would jump from $85 to nearly $750, causing her to potentially let her coverage lapse to manage her budget, which includes housing and child care costs. The Senate has recently rejected proposals to extend these tax credits, and the House Republican healthcare package does not include an extension. Consequently, many Americans will face higher insurance premiums and reduced affordability next year. This outcome highlights challenges in healthcare affordability and the impact of federal policy decisions on insurance markets. The story of these families illustrates the broader issue of rising health insurance costs as pandemic-related financial supports end. The lack of legislative action to extend subsidies could increase the uninsured rate, strain household budgets, and complicate access to care. The changes also underscore disparities in how lower-income and middle-class Americans experience coverage options and cost burdens under ACA marketplaces.