LOUISVILLE, Ky. (WDRB) -- Thousands of Kentuckians and Hoosiers will soon see substantial increases in insurance costs in the coming year as enhanced Affordable Care Act subsidies are set to expire.
With Congress on recess and no vote scheduled to extend the subsidies, Americans who purchase health insurance through ACA marketplaces will lose access to enhanced premium tax credits beginning Jan. 1. The lapse is expected to drive up monthly premiums for millions of people nationwide in 2026.
Health policy experts warn the change could be particularly stressful for families already struggling with rising costs.
"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 were 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 help reduce costs, including shopping for lower-priced plans or switching from a Silver plan to a Bronze plan, which typically comes with lower monthly premiums but higher out-of-pocket costs.
Premium increases will vary depending on age, income and plan selection. Hempstead said people at the lower end of the income scale who previously paid nothing for coverage could see monthly premiums of 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 stalemate, with leaders from both parties acknowledging the potential fallout 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 that would 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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