Millions of Americans who get health coverage through the Affordable Care Act (Obamacare) are bracing for major premium increases starting in January 2026. This comes as enhanced premium tax credits and other subsidies that helped make coverage affordable for millions are set to expire at the end of 2025. Congressional efforts to extend those subsidies have so far failed, making huge premium spikes more likely when open enrollment for 2026 coverage opens.
Why ACA Premiums Are Set to Rise Steeply
The root of the coming price increases lies in expanded federal subsidies, introduced under pandemic relief legislation and later extended to help more people afford marketplace plans. These enhanced premium tax credits capped how much low- and middle-income Americans pay out of pocket. They are set to expire on December 31, 2025.
Without these expanded tax credits, health policy analysts and enrollment trackers warn that many Americans will see premium hikes of 50%, 75%, or even higher, depending on income and family size — because individuals will lose a large share of the financial help they’ve relied on for years.
Who’s Most Affected
Nearly 24 million people who currently get subsidized coverage through ACA marketplaces will be most exposed to rising costs. Without Congressional action to renew or replace the enhanced credits, many will struggle to pay their premiums next year.
Recent reports show real stories of families facing huge financial strain — for example, monthly premiums that were previously less than $100 could grow into the mid-$700s, forcing hard choices about coverage, deductibles, or dropping insurance entirely.
Table: What’s Changing in ACA Premiums for 2026
| Topic | Now (2025) | After Dec. 31, 2025 |
|---|---|---|
| Premium Tax Credits | Enhanced credits lower monthly costs | Expire unless Congress acts |
| Average Premium Cost | Relatively stable with subsidies | Expected to jump significantly |
| Eligibility Breadth | Broad, includes incomes above 400% FPL | Reduced for many enrollees |
| Out-of-Pocket Cost Share | Capped at affordable % of income | Reverts to pre-enhancement rules |
| Consumer Relief Options | Subsidized bronze/silver plans | Higher costs, fewer credits |
Time-Sensitive Ways You Can Still Save
Even with looming premium hikes, there are actions you can take before January 1, 2026 that can help soften the blow and potentially lower your costs:
- Shop plans early during open enrollment: Premiums vary widely by plan tier, insurer, and state. Comparing plans early (starting Nov 1, 2025) helps you lock in the most affordable option.
- Maximize existing credits: Update your income and household information to ensure you’re receiving the full premium tax credits right now, before they expire.
- Choose cost-sharing options wisely: Plans with higher deductibles often have lower premiums; pairing them with a Health Savings Account (HSA) can reduce net costs.
- Check if you qualify for state-based subsidies: Some states provide additional help for ACA enrollees even if federal enhancements lapse.
- Explore short-term or alternative coverage (carefully): Temporary plans can reduce premiums short-term, though they may not cover all essential benefits.
Why Acting Now Matters
Once the enhanced subsidies expire, there’s no easy “undo” button — premium increases take effect for the full 2026 coverage year, and switching plans or markets mid-year usually won’t cut those costs. Finding ways to lock in savings before January 1 or navigating supplemental state programs can make a big difference.
Conclusion
As federal lawmakers continue debating whether to extend or revise ACA subsidies, many Americans face a stark reality: Obamacare premiums could rise sharply in 2026. With enhanced tax credits set to expire and legislative deals stalled, millions are bracing for increases that could double monthly costs or push families to downgrade or drop coverage. The key for many is to act early — compare plans, update subsidy qualifications, and explore alternative ways to offset higher out-of-pocket health care costs before the new year.
Disclaimer: Information reflects the current policy landscape and media reports. Final premium changes depend on official ACA enrollment data, IRS rules, and potential Congressional action.
