ACA health insurance premiums expected to rise 30% affecting 17 million Americans

Health insurance premiums for plans sold through Healthcare.gov under the Affordable Care Act (ACA) are set to rise by about 30% next year, marking the sharpest increase since 2018 and affecting approximately 17 million Americans. This surge is largely due to the scheduled expiration of enhanced premium tax credits introduced during the COVID-19 pandemic, which have helped keep coverage affordable but are set to end unless Congress intervenes. Democrats are pushing to extend these subsidies to prevent premiums from doubling or tripling in 2026, while Republicans argue the subsidies were always intended to be temporary and oppose tying them to government funding bills. The increase also reflects rising medical inflation, hospital and drug costs, and a likely shrinking pool of healthy enrollees. The ongoing government shutdown centers around this dispute, with Democrats demanding subsidy extensions as part of funding bills and Republicans holding out for a clean resolution to reopen the government first. Despite these challenges, officials claim that lower-cost plans will remain available even if subsidies expire, though many Americans dependent on the credits express concern about potential coverage loss or higher costs.