ACA Tax Credit Expiry Expected to Spike US Health Insurance Premiums Up to 50%

Millions of Americans face sharp increases in health insurance premiums in 2026 if Congress does not extend the Affordable Care Act (ACA) enhanced premium tax credits set to expire at the end of 2025. These subsidies have kept premiums affordable for low- and middle-income households, with enrollment surging to a record 24 million people, but insurers are already projecting rate hikes between 20% and 50% nationwide. In Washington state alone, premiums could rise by 21%, and when combined with subsidy loss, the average increase could reach 65%, risking coverage loss for thousands. Congressional Democrats, including House Leader Hakeem Jeffries, have vowed to oppose subsidy expiration and are willing to risk a government shutdown to protect healthcare affordability, while Republicans remain divided and President Trump has not publicly weighed in. Additionally, employer-based health insurance costs are expected to rise by about 6.5% per employee, the largest jump since 2010, further increasing workers’ financial burdens through higher premiums and deductibles. These escalating costs come amid broader economic challenges, including inflation and increased healthcare utilization, compounding concerns over healthcare accessibility and affordability across the U.S.