Millions Face Increased Health Care Costs as ACA Tax Credits Expire
Rising Premiums Leave Americans in Crisis
As families across the United States grapple with the expiration of Affordable Care Act (ACA) tax credits, many are facing substantial increases in their health insurance premiums. Kassidy Hooter, a 24-year-old mother of three from Shreveport, Louisiana, learned in December that her family’s health insurance costs would skyrocket, compelling her to reconsider her options during her high-risk pregnancy. With federal tax subsidies ceasing on December 31, 2025, Hooter realized she could no longer afford her ACA coverage, leading her to contemplate giving birth at home.
“We heavily considered that it might just be cheaper to give birth at home,” Hooter stated. Ultimately, she decided to forgo insurance entirely, relying on temporary financial aid from a local medical center to cover her care until her due date in February. Following the birth, her plan is to enroll her newborn in Medicaid, the government health program for low-income individuals.
Implications of Expired Tax Credits
The lapse of ACA tax credits threatens to reverse significant progress made since the ACA’s implementation in 2010, which reduced the uninsured rate from approximately 15% to 8%, according to Nima Sheth, vstart president of health juststart at the National Partnership for Women and Families. Experts warn that without interventions from Congress, the number of uninsured Americans could increase dramatically-potentially impacting up to 22 million individuals who relied on these subsidies.
The current window for Americans to enroll in ACA marketplace plans closes on January 15. Without backing from tax credits, premiums are estimated to rise by an average of 114% for those who previously depended on subsidies-a staggering increase that positions health insurance as an unattainable luxury for many families.
The Consequences of Costly Coverage
Stacy Kanas, a resident of Plantation, Florida, echoed Hooter’s concerns, facing a potential monthly insurance premium surge to $2,500 for her and her husband-more than doubling her previous costs, which included coverage for their 20-year-old daughter. Kanas expressed her anxiety about remaining uninsured, especially following her husband’s major surgery five years ago.
The financial burden has dissuaded many individuals from seeking necessary medical care, contributing to a cycle of delayed treatment that can lead to severe health issues down the line. Michelle Sternthal, interim senior director of policy and strategy at Community Catalyst, explained, “If you’re underinsured and you have high deductibles, the coverage you’re getting is designed to dissuade getting care, including preventative care.”
Robert Myers, a Missouri consultant, switched from a silver ACA plan to a bronze plan after experiencing a premium hike from $17 to $400 per month. Although his new plan has no monthly premium, he now faces significant out-of-pocket costs, leading him to limit doctor visits-potentially driving him to emergency care instead.
Legislative Actions and Future Outlook
As the political landscape evolves, the House of Representatives recently approved a three-year extension of the expired ACA tax credits. However, this legislation faces uncertainty in the Republican-led Senate. Lawmakers view this extension as a possible compromise to ensure continued support for those impacted by rising health care costs.
Experts warn that delays in addressing these issues will exacerbate the situation, locking families into chostarts that jeopardize both their health and financial stability, with broader implications for the community and healthcare systems.
For ongoing developments related to healthcare policy and protections for uninsured Americans, pay attention to updates from your local representatives.