ACA enrollees face higher premiums as Congress deadlocks over tax breaks

As the battle continues in Congress over health care cuts, enrollees are already starting to see higher premiums.

The federal government has been shut down for three weeks now, as Republicans and Democrats in Congress remain in an impasse over funding the federal government. Democrats have said they will not agree to a state budget until cuts to Medicaid are eliminated and health insurance tax credits under the Affordable Care Act are extended.

The ACA, also known as Obamacare, was created to make insurance coverage more affordable for many. Under the ACA, some enrollees receive… A tax credit to help pay their insurance premiums, as determined by their income level. COVID-19 era rules have provided Americans with a larger tax credit and expanded it to more individuals.

Health insurance companies are expected to increase their premiums in 2026, partly due to inflation and labor shortages. Many insurers also say that if the ACA tax credits are not extended, they expect many healthier enrollees will drop their ACA coverage because it will be too expensive. Insurers would then have a smaller, less healthy base of enrollees, and are more expensive on average.

Those enrolled in the 2026 insurance shopping window will likely see higher costs

While open enrollment won’t start until next month, some states are allowing residents to shop ahead so they can get an idea of ​​what health insurance will cost for 2026. Consumers in states like Georgia, Idaho, Maryland, New York and Virginia can estimate their premiums for next year.

For most Americans with ACA coverage, their health insurance costs are expected to increase.

Across the country, insurers on the ACA Marketplace have, on average, requested an 18% increase in their premium rates. That’s about four percentage points higher than it would have been if the ACA’s premium tax credit had not expired, according to an analysis by KFF, a nonpartisan health care research organization.

For example, insurers in Georgia have proposed premium rate increases ranging from 6% to 40%, Georgia Public Broadcasting reported. In Idaho, rate increases ranged from 6% to 23%, with an average of 10%, according to the Idaho Department of Insurance. In New York, consumers can expect an average premium increase of 38%, resulting in an individual paying nearly $1,400 more per year for their health insurance, according to the New York State Governor’s Office.