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ACA Enrollees Could Go Uninsured if Subsidies Lapse
Industry News
Thursday, December 11 2025
(By Emily Olsen - Healthcare Dive) Dec. 8 - The enhanced subsidies were first enacted during the COVID-19 pandemic, allowing many low-income ACA beneficiaries to pay little or nothing for health plans while improving affordability for middle-income enrollees.
However, the more generous financial assistance is set to expire at the end of the year without action from Congress, likely causing premiums to more than double and pushing millions to become uninsured.
Lawmakers have clashed over the issue for months. The subsidies were at the center of a historically long government shutdown earlier this fall, though the funding impasse ended last month without a deal. As part of an agreement to reopen the government, Republicans agreed to vote on a bill on the subsidies.
Democrats are pushing to extend the enhanced premium tax credits for at least one year to avoid a spike in costs, and some Republicans are open to the idea. But other conservative lawmakers have railed against the financial assistance, noting its high cost and potential for fraud.
However, lawmakers have limited time to address the problem. Open enrollment for marketplace plans began last month and runs through Jan. 15 in most states. Beneficiaries have to choose a plan by next week to get coverage on Jan. 1.
Nearly 90% of respondents to the KFF survey said they’d make a decision about their coverage this year. One in four said they had already made a decision, according to the survey, which fielded responses in the first weeks of November.
Meanwhile, allowing the subsidies to expire could be politically dangerous for Republicans. More than 80% of respondents — including 7 in 10 Republican voters — said they wanted to see the tax credits extended. If they lapse, 41% of those that supported an extension said President Donald Trump deserved most of the blame, while 35% pointed the finger at Republicans in Congress. And allowing the subsidies to lapse could put increased financial pressure on Americans — already a major concern for voters worried about rising costs.
To Read More Click Here
However, the more generous financial assistance is set to expire at the end of the year without action from Congress, likely causing premiums to more than double and pushing millions to become uninsured.
Lawmakers have clashed over the issue for months. The subsidies were at the center of a historically long government shutdown earlier this fall, though the funding impasse ended last month without a deal. As part of an agreement to reopen the government, Republicans agreed to vote on a bill on the subsidies.
Democrats are pushing to extend the enhanced premium tax credits for at least one year to avoid a spike in costs, and some Republicans are open to the idea. But other conservative lawmakers have railed against the financial assistance, noting its high cost and potential for fraud.
However, lawmakers have limited time to address the problem. Open enrollment for marketplace plans began last month and runs through Jan. 15 in most states. Beneficiaries have to choose a plan by next week to get coverage on Jan. 1.
Nearly 90% of respondents to the KFF survey said they’d make a decision about their coverage this year. One in four said they had already made a decision, according to the survey, which fielded responses in the first weeks of November.
Meanwhile, allowing the subsidies to expire could be politically dangerous for Republicans. More than 80% of respondents — including 7 in 10 Republican voters — said they wanted to see the tax credits extended. If they lapse, 41% of those that supported an extension said President Donald Trump deserved most of the blame, while 35% pointed the finger at Republicans in Congress. And allowing the subsidies to lapse could put increased financial pressure on Americans — already a major concern for voters worried about rising costs.
To Read More Click Here