Millions Face 114% Premium Hike as ACA Subsidies Nearing Expiration Fuel Repeal Calls

Millions of Americans relying on Affordable Care Act (ACA) health insurance marketplaces are projected to see their premium payments more than double, facing an average increase of 114% in 2026, as enhanced federal subsidies are set to expire at the end of 2025. This impending financial burden has reignited calls for a full repeal of the ACA, with critics arguing against government intervention in the health insurance market. "You don’t fix health insurance by providing more govt subsidies to hide what Obamacare did to the health insurance market. You repeal Obamacare," stated "Wall Street Mav" on social media.

The enhanced premium tax credits, initially introduced in 2021 and extended through 2025 by the Inflation Reduction Act, have played a crucial role in making health coverage affordable for approximately 22 to 24 million enrollees. Without congressional action to extend these subsidies, average annual premium payments for subsidized individuals are estimated to jump from $888 in 2025 to $1,904 in 2026, according to analysis by KFF. This sharp increase is attributed to both the removal of enhanced financial aid and rising healthcare costs.

The potential expiration has sparked intense debate in Congress, with Democrats advocating for their extension to prevent widespread coverage loss and financial hardship. However, a political standoff, including a recent government shutdown fight, has complicated efforts to secure a long-term solution. Many insurers have already factored the expiration into their 2026 rates, leading to proposed increases that are the largest since 2018.

Amidst this, efforts to repeal the ACA persist. In January 2025, Representative Andy Biggs (R-AZ) introduced H.R.114, known as the "Responsible Path to Full Obamacare Repeal Act," which aims to dismantle the entire law effective at the beginning of fiscal year 2026. This legislative push reflects a long-standing conservative objective to eliminate the ACA, often citing concerns about market distortion and government overreach.

The debate underscores fundamental disagreements over the role of government in healthcare. While enhanced subsidies have significantly boosted ACA marketplace enrollment and reduced the uninsured rate, critics like "Wall Street Mav" maintain that such subsidies merely mask underlying issues created by the ACA, advocating instead for a complete overhaul of the existing system. The coming months will be critical for millions of enrollees as lawmakers grapple with the future of health insurance affordability.