ACA insurance premiums are expected to increase sharply next year as enhanced subsidies are set to expire after 2025. This could cause premiums to rise by about 75%, leading to an average of over $700 in additional payments per year for enrollees.

Around 22 million people with ACA marketplace health plans received premium tax credits in 2025. The enhanced subsidies have helped reduce uninsured rates, with only 7.9% of the U.S. population uninsured in 2023, the lowest in history.

There is a push by some Republican lawmakers to continue the enhanced ACA subsidies, but others, like Rep. Andy Harris, believe they should end due to high costs. The fate of the subsidies remains uncertain, with Democrats likely to push for an extension before potential government shutdown on Oct. 1.

Premium tax credits under the ACA were initially available for households with incomes between 100% and 400% of the federal poverty level. The American Rescue Plan Act temporarily increased the credits and expanded eligibility to households with incomes over 400% of the poverty limit.

If the enhanced subsidies expire, households with incomes at or below 150% of the federal poverty line could see their average premiums rise significantly. Open enrollment for ACA plans begins Nov. 1, and insurers are already proposing premium increases in anticipation of subsidy changes.

Read more at CNBC: ACA enhanced subsidies ending may hike Obamacare premiums in 2026