With ACA subsidies set to lapse, millions of Americans face a painful spike in health plan costs
Updated on: December 12, 2025 / 3:16 PM EST / CBS News
TL;DR
- The ACA's enhanced premium tax credits are set to expire on December 31st.
- This expiration could cause average ACA participants' out-of-pocket premium costs to increase by 114%.
- Approximately 22 million Americans qualify for these tax credits.
- Some individuals and families face drastic monthly premium hikes, causing financial strain.
- Millions may consider dropping health insurance or choosing cheaper plans with less coverage.
- Small business owners and self-employed individuals are particularly vulnerable to these cost increases.
- Proposed legislation to extend the credits failed to pass the Senate.
- The expiration could destabilize the healthcare market, leading to increased uncompensated care and higher costs for others.