ACA Subsidy Expiration Threatens US Healthcare
Update: 2025-12-14
Description
Healthcare experts warn of a potential death spiral for the US healthcare system as Affordable Care Act subsidies expire, threatening to leave many Americans uninsured and rural hospitals struggling. Despite bipartisan support, Senate efforts to extend premium tax credits failed, leaving the subsidies set to expire at the end of the year. The average annual premium for ACA plans is projected to more than double by 2026, potentially forcing healthy individuals to leave the insurance pool and leaving behind a sicker population. If subsidies end, a third of current enrollees may choose lower-premium plans with higher out-of-pocket costs, and a quarter might go uninsured, placing a greater burden on hospitals, especially those in rural areas. This situation is particularly challenging for many who live in areas represented by Republicans, as a majority of Republican lawmakers voted against extending the tax credits.
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