Millions of Americans are facing significant increases in their health insurance premiums as enhanced tax credits under the Affordable Care Act (ACA) expired at the beginning of the new year. This decision affects millions of people who use the ACA as their lifeline to health care. This is particularly challenging for people who do not receive insurance through their workplace and who are ineligible for Medicaid or Medicare.
As gas prices soar through the stratosphere, for many people the financial burden is becoming entirely unacceptable. Katelin Provost, a 37-year-old single mother of three, is looking at an unthinkable jump in her monthly premium payment. It has jumped from $85 to almost $750! She joins a growing cadre of enrollees who are now forced to deal with sudden, shocking increases in some cases outrageous new costs. Take Stan Clawson, 49, a freelance filmmaker whose premium skyrocketed by more than $1,000. Last year, it was just under $350, but now it has jumped to almost $500.
The expiration of the enhanced American Rescue Plan (ARP) subsidies has affected enrollees severely. These subsidies were originally enacted in 2021, as a placeholder relief measure due to the COVID-19 pandemic. These subsidies were extended by Democrats in power until 2026, but with their cessation, more than 20 million subsidized enrollees are now facing average premium increases of 114% in 2026. Urban Institute and Commonwealth Fund analysts predict a grim reality. They project that up to 4.8 million Americans could lose their health insurance due to these increasing costs.
This is especially alarming for younger, healthier Americans who will now choose to not purchase health insurance at all. The financial implications are severe, as many navigate a complex landscape of health care expenses that have become increasingly unaffordable.
It’s supremely un-fair that the middle class has moved from a squeeze to outright strangulation. They continue to crank down the vise and push it on us,” Provost fumed.
Chad Bruns, a 58-year-old ACA enrollee from Wisconsin, has felt that affordability has become a hot-button concern. Bruns emphasizes the need for urgent reforms: “Both Republicans and Democrats have been saying for years, oh, we need to fix it. Then do it.”
The expiration of these subsidies comes at a time when voters are more concerned than ever about the cost of health care. This concern is compounded as they go into a potentially high-stakes midterm election year. Understandably, the financial strain felt by many is by all accounts palpable and pressure to bring back these subsidies has grown sharply, even in Congress.
While President Donald Trump previously suggested potential solutions to address the expiring subsidies, he later backed away following conservative backlash. This inconsistency underscores the persistent political headwinds that health care reform and affordability continue to face.
And the impacts of these premium hikes go far deeper than hurting these specific enrollees individually. These are the choices families are compelled to make as they deal with increasing burdens from health care outlays in addition to other financial stress. As you can tell, it’s a very fast-moving situation. Tens of millions of Americans would greatly benefit from included legislative action that relief and restores unsurpassed support for the millions who depend on these vital subsidies.
