ACA cliff may mean ‘huge premium shock’ for 22 million people in 2026, expert says

## ACA Premiums Set to Skyrocket Without Congressional Action

The Affordable Care Act (ACA), also known as Obamacare, is facing a potential crisis. Enhanced subsidies that have kept health insurance costs down for millions are set to expire in 2025, which could lead to a significant increase in premiums. Here’s a breakdown:

• **Premium Increase:** Without intervention, average ACA premiums could jump by approximately 75%, adding over $700 per year to costs.
• **Impacted Individuals:** Around 22 million people currently receive premium tax credits through the ACA marketplace.
• **Subsidy Cliff:** The expiration of enhanced subsidies creates a “subsidy cliff,” leading to a sudden and substantial increase in healthcare costs.
• **Who is Affected?:** ACA plans are often used by those without employer-sponsored insurance, such as students, contractors, and the self-employed.
• **Uninsured Rate:** The enhanced credits have helped drive down the uninsured rate to a historic low of 7.9% in 2023.
• **Political Uncertainty:** The future of these subsidies is uncertain, with some Republicans opposing an extension due to cost concerns.
• **Legislative Deadline:** Congress has a limited time to act before a potential government shutdown on October 1st, and open enrollment for ACA plans begins November 1st.
• **Premium Hikes:** Insurers are already proposing larger premium increases for 2026, anticipating the expiration of the enhanced credits.

For more details, you can read the original article on CNBC: [https://www.cnbc.com/2024/09/20/aca-premiums-set-to-rise-sharply-next-year-without-congressional-action.html](https://www.cnbc.com/2024/09/20/aca-premiums-set-to-rise-sharply-next-year-without-congressional-action.html)