Enhanced ACA marketplace premium tax credits expired at the end of 2025, and the impact is now showing up in 2026 bills — average monthly premium payments after tax credits rose 58% for enrollees who kept the same plan, with some estimates putting the increase over 100% for certain subsidized households.
What Actually Expired
The temporary, enhanced premium tax credits that applied to ACA marketplace plans from 2021 through 2025 expired on December 31, 2025. The original, permanent ACA premium tax credit program still exists — it wasn’t eliminated — but it’s less generous than the enhanced version, particularly for middle-income households who only qualified for meaningful help because of the temporary enhancement.
This is a subsidy reduction, not the end of ACA subsidies altogether. People below the original program’s income thresholds can still get some premium assistance; what changed is how much, and who qualifies at all.
How Much Premiums Actually Rose
Average monthly premium payments (net of tax credits) for marketplace consumers rose 58%, from $113 to $178, comparing 2025 to 2026. Separately, KFF had projected that premium payments could rise by as much as 114% on average for subsidized marketplace enrollees trying to keep the same plan in 2026 — the gap between these figures reflects different methodologies and time points, but both point the same direction: substantially higher out-of-pocket premium costs for the same coverage.
Who Got Hit Hardest
Middle-income households — including older adults and small business owners who don’t get coverage through an employer — are most exposed, because the enhanced credits had specifically removed the income cap that previously cut people off from any subsidy above a certain earnings level. Some families in high-cost states are now facing premiums exceeding $1,000 a month for plans that were substantially cheaper with the enhanced credit in place.
How States and Congress Are Responding
Some states have stepped in with their own money: Connecticut committed $70 million to offset the expired federal subsidies for 2026, aiming to keep costs flat for individuals earning up to $56,000 and families of four earning up to $128,000. At the federal level, a bipartisan group of senators has continued negotiating a possible extension, with Republicans reportedly preparing a "best and final" offer built around a two-year extension paired with income limits and expanded Health Savings Account eligibility — but as of this writing, no federal extension has been enacted.
What to Do If Your Premium Jumped
Check your marketplace account for your updated 2026 premium and tax credit amount, and compare plans during open enrollment rather than assuming your previous plan is still the best value — with the subsidy structure changed, a different metal tier or insurer may now cost less for similar coverage. If you’re in a state that added its own subsidy program, confirm whether you need to do anything extra to receive it, since state supplements aren’t always applied automatically.
Frequently Asked Questions
Are ACA subsidies gone completely?
No. The original, permanent premium tax credit program is still in place. What expired was the temporary enhancement that had made credits larger and available to more people from 2021 through 2025.
Will Congress restore the enhanced credits?
Negotiations were ongoing as of mid-2026, with a possible two-year extension under discussion, but nothing had passed as of this writing. Check current marketplace guidance for the latest status before assuming a change either way.
Does my state offer help if federal subsidies dropped?
Some states, like Connecticut, created their own supplemental programs. Check your state’s marketplace or insurance department to see if a similar program exists where you live.
Source: What We Know So Far About 2026 ACA Marketplace Enrollment, Premiums, and Deductibles — KFF