ACA Enrollees Face Rising Premiums as Congress Deadlocks Over Tax Credits

As the fight in Congress over health care cuts continues, enrollees are already beginning to see higher insurance premiums.

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

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

Health insurers 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 anticipate many healthier enrollees will drop their ACA coverage because it will be too expensive. Insurers would then have a smaller and less healthy enrollee base, which is more expensive on average.

Enrollees Window-Shopping For Their 2026 Insurance Likely See Higher Costs

While open enrollment doesn’t begin until next month, some states allow residents to window-shop beforehand so they can get an idea of the cost of their 2026 health insurance. Consumers in states like Georgia, Idaho, Maryland, New York, and Virginia can estimate their premiums for the upcoming year.

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

Across the country, ACA Marketplace insurers have, on average, requested to increase their premium prices by 18%. That is about four percentage points higher than it would be if the ACA premium tax credit were not expiring, according to an analysis by KFF, a nonpartisan health care research organization.

For example, insurers in Georgia proposed premium rate increases ranging from 6% to 40%, as reported by Georgia Public Broadcasting. In Idaho, rate increases ranged from 6% to 23%, with the average being 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 approximately $1,400 more per year for their health insurance, according to the New York State governor’s office.