MADISON, Wis. — Americans may have to pay more for health insurance premiums as a consequence of the government shutdown, which has caused an increased debate about the extension of subsidies that many Americans use to afford their healthcare.
24 million Americans get their health insurance through the Affordable Care Act, primarily those who do not receive healthcare through their work, Medicare, or Medicaid.
“Enhanced premium tax credits” were proposed in 2022 by Congressional Democrats to help families on the federal poverty line afford their health insurance premiums. As part if the “Big Beautiful Bill” proposed in July, the enhanced premium tax credits were not extended, and are set to expire on December 31, 2025.
This means that people enrolled in the Affordable Care Act are going to lose many of their subsidies, which will make healthcare less accessible.
Alex Jacquez, Chief of Policy and Advocacy at Groundwork Collaborative, a DC think tank, tells WTMJ’s ‘Point Taken‘:
“We’re going to see an average of 114% increase on out of pocket premium costs. We’re going to see that spike to up to 600% for lower income families. It’s gonna push as many as 4 million Americans off their health insurance as they simply won’t be able to afford it anymore.”
Democrats are making this a key sticking point to resolving the government shutdown, with President Trump saying on Truth Social he’s “happy to work with the Democrats on their Failed Healthcare Policies, or anything else, but first they must allow our Government to re-open.”
Health insurance open enrollment starts on Novemeber 1. Jacquez believes many people will experience “sticker shock” when they encounter the increased rates and as a result, drop their insurance.
The Congressional Budget Office expects around 2 million more Americans to become uninsured next year without the subsidies, and 3.8 million over a decade.
To change the costs of healthcare for 2026, Congress needs an extension for the “enhanced premium tax credits” to be negotiated by November 1.
“Mechanically we as a country are getting older, you consume more healthcare, consuming more healthcare is placing more strain on the system, prices are continuing to go up. Even if you are not in a marketplace plan I think this an issue for insurers across the board who are counting on some of these credits to be able to back up their bottom lines and have people purchase their insurance plans,” says Jacquez. “There are a lot of cuts to health care. I think hospital systems, physicians, and insurers are extremely concerned.”
