Millions of Americans are facing significant health care insurance premium spikes. The current government shutdown is preventing subsidies from being distributed as subsidies. Reports average the costs increases at about 18%. The enhanced Affordable Care Act tax credits were part of a COVID relief package, and with a government shutdown, the credits will expire at the end of this year.
It comes as health insurance costs have already been rising, even with the subsidies. A recent KFF survey found that the average annual premium for a family with workplace insurance reached nearly $27,000 in 2025. That is a 6% increase from the previous year.
In New Jersey, for example, reports say that people who buy health insurance through the state’s exchange will have an nearly 175% increase in their premiums in 2026. Nationwide about 24 million people are part of the subsidy program.
“For the upcoming plan year, it is essential for all consumers to carefully shop and compare health plans to secure coverage that best meets their needs and budgets,” Department of Banking and Insurance (DOBI) Commissioner Justin Zimmerman said in a statement. “Continued Congressional inaction on extending the enhanced premium tax credits will result in higher insurance costs for New Jersey residents who count on Get Covered New Jersey for health coverage for themselves and their families.”
Nationwide, the domino effect of the shutdown and/or the abolition of credits could be devastating. 2027–2034: Stricter Medicaid rules will be phased in, including more frequent eligibility checks and new cost-sharing. The Congressional Budget Office estimates 11 to 17 million Americans will lose coverage. Beyond 2028, caps on state provider taxes squeeze already struggling hospitals. Public health models (published in the Annals of Internal Medicine) project about 16,000 additional deaths annually due to coverage loss and service disruptions.
With deadlines approaching, Congress and the administration are still in a cat and mouse game that may affect millions of Americans.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.