Health insurance costs are expected to rise significantly for millions of people as the enhanced subsidies from the American Rescue Plan Act expire at the end of 2025. Without an extension, premium costs could double for many Marketplace enrollees.
While some Americans could face premium increases of over $1,000 per month, older and younger, healthier individuals are at a higher risk of incurring these costs or losing their insurance entirely.
“Congress’ failure to extend these subsidies is driving the government shutdown and will harm millions of people already struggling with soaring prices and healthcare costs,” Matt McConnell, economic justice and rights researcher at Human Rights Watch, said. “These cuts are making ordinary people sacrifice their health to pay for tax breaks for the wealthy few.”
The subsidies, which lowered health insurance costs of private health insurance enhanced by the American Rescue Plan Act and extended by the Inflation Reduction Act through ACA marketplaces, are set to expire on December 31, 2025. These plans have “significantly reduced healthcare costs for millions of people,” Oxfam America reported. According to a press release, the population covered by ACA marketplace plans has “more than doubled, rising from 11.4 million in 2020 to 24.3 million in 2025, helping drive a decline in the country’s uninsured rate.”
“Instead of ensuring ordinary people can access adequate health care, the administration and Congress have chosen to prioritize large tax handouts for the wealthy and well-connected,” Rebecca Riddell, senior policy lead for economic justice at Oxfam America, said. “Not extending subsidies risks further inflaming economic inequality, which is already sky high and likely to increase following massively regressive cuts to social protection passed in July.”
Some potential consequences include financial hardship, loss of coverage or delayed care.
“Congress should fix the country’s healthcare system,” McConnell said. “But in the meantime, they shouldn’t make things far worse by cutting this lifeline for millions.”
COMMENTS