Millions of Americans are bracing for significant increases in their health insurance costs for 2026 as Congress remains stalled over the potential extension of COVID-era subsidies for premiums. This ongoing dispute contributed to a government shutdown that commenced in early October. Democrats are adamantly refusing to support government-funding legislation unless it includes the renewal of these subsidies, whereas Republicans advocate for separate negotiations once the government reopens. The urgency for a resolution is heightened as consumers purchasing insurance through the Affordable Care Act (ACA) are facing or will soon face the reality of enhanced subsidies set to expire at the year’s end.
Healthcare.gov, which serves 28 states, is expected to reveal its 2026 plan offerings next week, coinciding with the start of open enrollment in November. However, preliminary shopping has already begun in the 22 states with their own marketplaces, giving consumers a troubling glimpse of the upcoming financial burden.
An analysis from the nonpartisan health policy group KFF indicates that premiums across the United States could average a staggering 18% increase, representing the highest annual price hikes recorded since the marketplaces were established 12 years ago. The average marketplace consumer is projected to face annual premiums of $1,904 in 2026, up from $888 in 2025.
In Georgia, a state that has seen a notable increase in marketplace enrollment, the anticipated financial fallout is particularly severe. Reports from earlier this month indicate that about 96% of Georgians enrolled in the marketplace received subsidies this year. As they browse the state website, many are alarmed to find that estimated monthly costs could double or even triple depending on their income levels.
“People are expressing concerns that they will have to choose between paying their monthly premiums and their mortgage,” noted Natasha Taylor, Deputy Director of Georgia Watch, a consumer advocacy organization.
For instance, a family of four in Georgia earning $82,000 could see their annual premium climb to approximately $7,000 for a plan with midrange coverage. Furthermore, families earning over $130,000 may watch their annual premium skyrocket to around $24,000 instead of the previously subsidized $11,000.
This trend isn’t confined to Georgia; other states are reporting similarly alarming statistics. In Kentucky, a 60-year-old couple earning $85,000 may face annual premiums of $31,000, while those in Oregon and Vermont face costs of $28,000 and $44,000, respectively.
The potential lapse of subsidies could drive around 340,000 individuals out of Georgia’s 1.5 million-person marketplace, according to estimates from Georgians for a Healthy Future, a nonpartisan advocacy group. The enhanced subsidies have previously provided vital financial relief for millions of lower-income individuals, effectively covering their monthly premiums. As these subsidies expire, many will suddenly find themselves having to contribute financially.
The political ramifications in Georgia are already palpable, with Rep. Marjorie Taylor Greene (R-Georgia) breaking party lines to advocate for extending the subsidies, stating that her adult children’s premiums are poised to double. Conversely, Senator Jon Ossoff has highlighted the issue of increasing premiums as a significant concern, particularly as polling shows that many Georgians support the extension.
Healthcare costs across the nation have escalated partly due to the pandemic’s impact and rising medical service costs. The Congressional Budget Office has projected that nearly 4 million fewer Americans will have ACA marketplace plans within the next decade if the enhanced subsidies are not renewed.
While some Republicans argue that the subsidies are a temporary fix for the broader systemic issues within the ACA, a group of 13 House Republicans in closely contested districts has called upon their leadership to consider extending premium assistance. They acknowledged the urgency of the situation, indicating a shared responsibility to find solutions.
Senator Patty Murray (D-Washington) highlighted stories from constituents who are facing unbearable price hikes, pointing to families in red states that heavily rely on premium assistance. As insurers anticipate a drop in healthy enrollees due to increased premiums, they express concern about creating a pool of sicker and more costly customers.
If Congress acts swiftly to extend the subsidies, there remains hope that some plans may adjust their rates downward even after the open enrollment period begins on November 1. But consumer advocates warn that the damage may already be done, as many individuals might choose to forgo coverage upon seeing higher premiums and may not reconsider their options even if subsidies are reinstated.
As lawmakers continue to navigate this critical issue, the outcome will significantly impact the healthcare landscape for millions, underscoring the intricate connection between policy decisions and the well-being of American families.