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Some of those enrolled in Obamacare health plans could see their premiums rise $24,604 per year
J.R. Duren In Jacksonville, Florida Wednesday 17 December 2025 21:11 GMT- Bookmark
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CloseIf lawmakers don’t extend Obamacare tax subsidies, some individuals could see annual premiums rise by more than a $24,000
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Pandemic-era subsidies that lowered the costs of health insurance for millions of people are set to expire on December 31, 2025.
If they do, then those who have bought plans through federal and state health insurance marketplaces could see their monthly premiums skyrocket as much as $2,050 per month (or $24,604 per year) in some cases, according to research firm KFF.
Protecting the subsidies has become a flashpoint for consumers as they struggle with the rising costs of healthcare, and beyond.
The expiring subsidies are at the heart of a raging battle in Congress, with Democrats trying to keep the enhanced subsidies and Republicans wanting to eliminate them.
On Wednesday, four House Republicans - who face fraught battles in the 2026 Midterms - sided with Democrats to force a vote on the Affordable Care Act (also known as “Obamacare”) rather than discuss the alternate healthcare proposal submitted by House Speaker Mike Johnson, which did not provide subsidies.
open image in galleryProtecting subsidies has become a flashpoint for consumers as they struggle with rising costs beyond healthcare. Individuals who earn the median salary in the U.S. - around $63,000 - would lose their Obamacare subsidies if enhanced premium tax credits expire (Getty Images)Why subsidies matter
Marketplace plans require a monthly premium payment in exchange for coverage, similar to employer-sponsored plans. These plans are designed for individuals who don’t get healthcare through their employer, making them a good fit for freelancers and contract workers.
Many of those with marketplace coverage are eligible for premium tax credits that lower how much they pay each month for coverage.
The credits are based on factors such as income and family size. For example, a marketplace plan may have a monthly premium of $1,000, but tax credits could reduce that cost to $500.
In 2021, with the pandemic still raging and economic uncertainty looming, the Biden administration enhanced the premium tax credits in two ways, according to healthcare research firm KFF:
- Increasing credit amounts for those already receiving them;
- Making eligible those earning more than 400 percent of the federal poverty level of $15,650 - therefore those on around $62,600.
As a result, premiums were lower for some of those insured by Obamacare, and others who were previously locked out of tax credits became eligible. KFF noted that marketplace enrollment more than doubled due to the enhanced tax credits.
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open image in galleryHouse Speaker Mike Johnson, pictured Wednesday, has seen some of his party side with Democrats over healthcare subsidies (REUTERS)It’s these enhanced credits that are on the verge of sunsetting, and their demise will mean premium increases for many - and a loss of all subsidies for a projected 7.3 million people, according to research firm Urban Institute.
The institute estimated that the changes will leave 4.8 million people uninsured. And in eight states - Georgia, Louisiana, Mississippi, Oregon, South Carolina, Tennessee, Texas, and West Virginia - marketplace enrollment will likely drop by more than 50 per cent, researchers found.
So how much more could you pay?
If Congress doesn’t extend the enhanced premium tax credit, consumers from all income levels will feel the sting, according to KFF, but those earning more than 400 per cent of the federal poverty level would be hurt the most.
For example, someone on a low annual income of $18,000, would see healthcare premiums increase $378 per year. Those earning $45,000 per year would see their costs rise $1,836 annually.
Individuals without kids earning around the median U.S. annual salary - $63,128 - or higher, would lose their enhanced premium tax credits because they make more than 400 per cent above the poverty level.
A 45-year-old couple without children earning a combined $85,000 per year would pay $561 more per month - $6,753 per year - by losing their enhanced premium tax credits.
Older couples would fare worse. For example, a 60-year-old couple without kids earning $85,000 would see their monthly premiums rise $2,050 per month, or $24,604 per year, according to KFF.
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