Congressional Democrats want the ACA subsidies extended as part of the deal to end the shutdown|@HouseDemocrats|X
Open enrollment for Affordable Care Act (ACA) health insurance begins today, but millions will see a jump in premiums due to the government shutdown, now the second-longest in US history.
Major premium hikes are set to kick in due to Congress’s failure to extend enhanced federal subsidies that make coverage more affordable. Most enrollees’ premiums are expected to rise 26%.
Democrats want the subsidies extended as part of the deal to end the shutdown. Republicans want to negotiate it separately.
The subsidies—first introduced in 2021 under President Joe Biden and extended in 2022—are set to expire at the end of 2025, and the current shutdown has stalled any deal to renew them.
Without action, premiums for roughly 22 million of the 24 million ACA enrollees could rise an average of 114% in 2026, according to the health policy research group KFF.
The issue is politically sensitive. More than half—57%—of ACA enrollees live in Republican districts, and 80% of the tax credits ($115 billion) go to states that voted for President Donald Trump.
Health experts note that the loss of subsidies could prompt people to skip coverage, opt for cheaper plans, or leave the marketplace altogether—further driving up premiums.
Financial planners advise consumers to:
- Enroll based on current prices and not assume Congress will act.
- Recheck plans before December 15 in case subsidies are restored.
- Choose coverage that fits medical needs, like high-deductible plans for healthy people, robust coverage for those with chronic conditions.