The lapse is expected to drive up monthly premiums for millions of people nationwide in 2026.
LOUISVILLE, Ky. (WDRB) — Thousands of Kentuckians and Hoosiers will face significant increases in health insurance costs in the coming year as enhanced Affordable Care Act subsidies expire.
With Congress in recess and no vote scheduled to extend the subsidies, Americans who buy health insurance through ACA marketplaces will lose access to enhanced premium tax credits starting Jan. 1. The lapse is expected to raise monthly premiums for millions of people across the country in 2026.
Health policy experts warn the change could place added strain on families already dealing with rising expenses.
“I think it’s going to be incredibly stressful for people,” said Kathy Hempstead, a policy officer with the Robert Wood Johnson Foundation, a nonprofit that advocates for health equity.
According to HealthCare.gov, about 350,000 Hoosiers enrolled in ACA marketplace plans in 2025, along with roughly 100,000 Kentuckians. Many of those enrollees are expected to feel the impact of higher premiums.
Hempstead said consumers can take steps now to limit costs, such as shopping for lower-priced plans or switching from a Silver plan to a Bronze plan, which usually offers lower monthly premiums but higher out-of-pocket expenses.
Premium increases will vary based on age, income, and plan selection. Hempstead said people on the lower end of the income scale who previously paid nothing for coverage could see monthly premiums rise to around $80, while many middle-income enrollees may face increases of $100 or more.
“I think there’s a cascade of problems that Americans are going to experience as we see this big threat to coverage,” Hempstead said.
Lawmakers remain divided on the issue. Republicans and Democrats have blamed each other for the impasse, with leaders from both parties acknowledging the potential consequences for consumers.
Senate Minority Leader Chuck Schumer, D–New York, said the failure to act before the deadline has already caused harm.
“Huge damage has already been done, and nothing we do after January 1 can undo so much of that damage,” Schumer said.
The U.S. House is expected to vote in January on a Democratic proposal to extend the ACA subsidies for three years. Until then, consumers are encouraged to review their coverage options and prepare for possible premium increases.
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