Health subsidies expire, launching millions of Americans into 2026 with steep insurance hikes
ABC7 New York••nation
Key Points:
- Enhanced tax credits under the Affordable Care Act, which lowered health insurance costs for millions, expired overnight, causing significant premium increases for many enrollees starting in 2026.
- The subsidies, initially introduced during the COVID-19 pandemic and extended until 2026, helped lower-income and middle-class Americans afford coverage, with some paying no premiums or limited to 8.5% of income; now premiums are rising by an average of 114%.
- The expiration may prompt millions, especially younger and healthier individuals, to drop coverage, potentially increasing costs for remaining enrollees; an estimated 4.8 million people could forgo insurance in 2026.
- Political efforts to extend the subsidies failed before the deadline,
