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Global Desk Millions of Americans may have to pay more for health insurance soon. The 2026 Affordable Care Act (ACA) open enrollment starts in a few days. Prices may go up because special discounts, called Obamacare subsidies, might end. These discounts helped many people pay for their insurance.Democrats and Republicans in Congress are still fighting over whether to continue these extra subsidies. This fight is one big reason for the government shutdown, which is now the second longest in U.S. history, according to The Hill. Democrats say these extra tax credits should stay to keep health insurance affordable for millions of Americans.Obamacare subsidies delay may cause market confusionRepublicans refuse to discuss health care until the shutdown ends. They want to change or tweak the ACA’s subsidies before extending them. According to the report by The Sun, if a deal happens before November 1, the federal and state marketplaces can still quickly update their systems to include enhanced subsidies in insurance prices. Insurers already finalized base premium rates over the summer, but if subsidies are extended, the net cost for consumers will drop.Larger financial help from the tax credits would make monthly costs much lower for consumers. Jessica Altman, executive director of Covered California, told The Hill that making big policy changes now is too late. “If there’s going to be a big policy conversation about marketplace affordability, it’s too late to do that for 2026 coverage... it should be done for 2027 coverage,” she said. Altman also said, “The later it is, and the more different it is from the structure we have today, the longer it will take, the more burdensome it will be... and the more messy it will be.”ALSO READ: 90% of Americans miss this simple tax trick that can slash RMD pain — don’t be one of themLive EventsState insurance leaders and health experts agree that any late deal to extend or change subsidies will cause market disruptions and consumer confusion for 2026. Jeanne Lambrew, a key health adviser during the Obama administration, told The Hill, “It’s just not an on/off switch... we’re just past the point where major changes to the premium tax credits could be implemented for January 1.”Higher insurance costs ahead if subsidies endDemocrats, state officials, and health industry groups are urging Congress to act quickly to extend subsidies to avoid market chaos. Devon Trolley, executive director of Pennsylvania’s insurance exchange, told The Hill, “We’ve been saying this for over a year... the earlier the decision, the more certainty and stability for the market.”The Inflation Reduction Act of 2022 only extended the enhanced subsidies through the end of 2025. Republicans did not include an extension of these subsidies in Trump’s One Big Beautiful Bill Act, missing the chance to renew them. The Affordable Care Act created Premium Tax Credits (subsidies) to help reduce monthly insurance costs for Americans buying plans through marketplaces, as stated by The Sun. Congress temporarily expanded them under the American Rescue Plan Act and Inflation Reduction Act, increasing financial help and allowing more middle-income families to qualify.These extra subsidies will end on December 31, 2025, if Congress does not make a new decision soon. If they are not continued, many people will have to pay much higher insurance costs in 2026. The argument over these subsidies is a big reason for the current government shutdown. Even though sign-ups for 2026 plans start soon, many states have already shown plan prices, and they are higher.Many state exchanges have posted rates assuming subsidies will expire, meaning higher out-of-pocket costs for consumers. Idaho was the first state to start its open enrollment on October 15, with predicted 75% higher premiums — about $1,200 more a year without tax credits. In Washington, premiums will rise by 65% on average for people depending on Obamacare subsidies. About 17 million Americans who use Healthcare.gov will face average premium increases of 30%, according to The Washington Post.Insurers say the end of extra subsidies will make healthy people drop coverage, leaving only sicker, more expensive customers, which will push rates even higher. According to KFF, the average American could pay $1,904 in yearly premiums in 2026 if enhanced tax credits expire. In California, monthly premiums could jump by 97% without a subsidy deal, Jessica Altman of Covered California told The Hill.Altman said, “I don’t really feel like I can mitigate the sticker shock, because the sticker shock is real right now.” She warned many Americans may skip insurance altogether — and some may never return, even if subsidies return later. “We will do everything we can... but I also know it won’t be everyone, and it will be fewer people that we get back the longer this goes,” Altman said.As the subsidy issue continues, 350,000 Americans may qualify for $75 million in health insurance rebates under a new policy. Experts also warn Americans not to pay big hospital bills immediately, as a simple step could save thousands of dollars. FAQsQ1. Why are health insurance costs increasing in 2026?Health insurance costs may rise in 2026 because the enhanced Obamacare subsidies are set to expire at the end of 2025 unless Congress extends them.Q2. When do the enhanced Obamacare subsidies expire?The enhanced Affordable Care Act subsidies will expire on December 31, 2025, if lawmakers do not renew them.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News onhealth insurance costs 2026Insurance costs for AmericansObamacare subsidies expirationinsurance premiums increaseAffordable Care Act open enrollmentCongress health care subsidiesCalifornia health insurance premiumsgovernment shutdown impact on health caremarketplace health insurancehealth insurance cost increase (Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onhealth insurance costs 2026Insurance costs for AmericansObamacare subsidies expirationinsurance premiums increaseAffordable Care Act open enrollmentCongress health care subsidiesCalifornia health insurance premiumsgovernment shutdown impact on health caremarketplace health insurancehealth insurance cost increase(Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless
