Millions face shocking premium hikes as ACA subsidies expire

In the United States, millions who rely on Affordable Care Act health plans are expected to experience significant premium increases due to the expiration of enhanced subsidies initially included in the American Rescue Plan Act of 2021. As of July 2025, insurers are seeking an average rate increase of 15%, marking the largest hikes since 2018. This increase stems from multiple factors, including rising medical and labor costs, as well as new policies enacted during the Trump administration, which have continued to affect the healthcare landscape. The expiration of enhanced subsidies could result in average consumer premium costs spiking by 75%, leading many enrollees to potentially drop their coverage. Enrollment may decline by as much as 57%, further complicating an already challenged market. Without legislative action to extend the subsidies, consumers will face mounting financial pressures as they head into the open enrollment period beginning November 1. Insurers are specifically concerned that without the assistive measures, healthier individuals may exit the market, leaving a higher percentage of sicker and costlier policyholders in the system. This has raised alarm among industry experts and insurance brokers alike, as discussions continue in Congress regarding possible solutions to alleviate these impending premium increases. The dynamics of the debate surrounding health care coverage and costs are especially relevant as they emerge in the context of approaching midterm elections, where healthcare affordability is likely to play a crucial role in shaping voters' decisions. With the finalization of premium rates imminent, stakeholders are monitoring the situation closely to see if additional legislative moves will tackle the issues facing ACA enrollees throughout the upcoming coverage year.