Millions of Americans awoke to a devastating spike in health insurance premiums as the new year, 2026, began. This follows a failed vote to extend subsidies under the Affordable Care Act (ACA). The lapse has caused widespread concern among citizens who now find it harder to afford health coverage, including plans connected to federal assistance programs.
The tax credits, which were first extended during the COVID-19 pandemic, have officially expired. Many Americans are now required to pay higher monthly rates than before, placing them under increased financial strain. This is not a minor increase; premiums are reportedly rising anywhere from 2.8% to 8.5% for health insurance plans.
🚨 ACA Subsidy Update
Congress failed to pass an extension before recess, so the enhanced ACA subsidy expiration Jan 1 is now effectively locked in
It can still be fixed later, but unless Congress acts very early in 2026, the 2026 plan year starts with reduced subsidies
Why… pic.twitter.com/X40Czsa3HV
— StockChaser (@StockChaser_) December 26, 2025
The Mirror US noted experts’ predictions that there could be a significant drop in health insurance enrollment. Multiple experts estimate that out of approximately 24 million Americans, about 4.2 million could be forced to opt out of health insurance coverage.
The Associated Press highlighted the groups most affected by the expiration of ACA subsidies, which had been extended since the pandemic. The publication reported that small entrepreneurs, farmers, and small business owners would bear the brunt of the enhanced tax credit expiration.
July 4, 2025: President Trump signs the One Big Beautiful Bill into law. pic.twitter.com/OnlsxP7RjB
— The White House (@WhiteHouse) December 31, 2025
According to the publication, about 20 million Americans are seeing a reported 118% increase in their premiums, which is way more than usual. For example, those who would usually pay $350 monthly for health insurance will now have to pay a hefty sum of $500. Such is the case for a 49-year-old freelance filmmaker, Stan Clawson.
While this is a $150 increase, some are paying much higher than that. Per the publication, a social worker named Provost, will have to pay a whopping $850 every month. The social worker had previously paid $85 for the same health insurance plan.
Like so, the new year has brought about a harsh reality for those paying for health insurance. This harsh reality not only puts the health of dozens at risk. It will also likely prevent those who cannot afford Medicare or Medicaid from seeking the necessary medical attention they need.
Our health insurance 2025 vs 2026:
$800/mo to $1700/mo
Insurance company raised the premium $400/mo & we lost $500/mo ACA subsidy.
I understand the expired subsidy but why the huge increase by FL Blue?!?!
— The Traveling CPA 🌎 (priv/acc) (@kristieds) January 1, 2026
In 2025, President Donald Trump announced his “big beautiful bill,” aimed at reshaping the healthcare and food industry. The OBBA, or One Big Beautiful Bill Act, is aimed at implementing most of Trump’s major policies, which include healthcare.
Previously, Congress attempted to extend these subsidies from the COVID-19 era to avoid the crisis of rising premiums entirely. However, despite a 43-day Government shutdown, there was no extension, resulting in the rise of premiums as is. The Trump administration has yet to comment on a solution to this dire problem faced by people across America.
Thus far, many citizens have expressed distress over the rising costs in not just health care services but also groceries and other everyday materials needed for sustenance.
