While millions of people are looking for health plans on the insurance market, the future of Health Market subsidies, also known as Obamacare, is uncertain, as Congress has yet to decide whether to extend them through 2026.
These subsidies or tax credits help people purchase health coverage on their own when their employers do not offer it.
Those who will be affected if the enhanced tax credits expire include part-time workers, temporary workers, small business owners, self-employed individuals, and those who work in sectors that do not typically offer health benefits, such as domestic work.
This uncertainty has had a direct impact on the cost of health insurance and who will be able to access these plans in 2026 and beyond. Here’s what you need to know:
1. Expanded ACA subsidies expire on December 31, 2025
- The “enhanced premium tax credits” were expanded during the pandemic and then extended until 2025. The extension of these subsidies expires on December 31, 2025, and Congress is currently debating whether to renew them.
2. If subsidies are not renewed, costs will rise for many in 2026
- If Congress does not renew them, many people will see drastic increases in the amount they pay regularly to keep their policy in force. According to analyses by organizations such as the Kaiser Family Foundation (KFF), monthly payments could be more than double in 2026.
- According to analysis by the Center on Budget and Policy Priorities (CBPP), if subsidies expire, millions of people could face unaffordable costs, and some could lose coverage entirely.
3. People who do not receive subsidies will also see a sharp increase
- This is because, if subsidies are eliminated, insurers expect healthier people to be the first to cancel their health insurance, making coverage more expensive for other members.
4. You must enroll by December 15 to receive coverage in January
- Although enrollment for the insurance marketplace is open until January 15, 2026, if you want to receive coverage on January 1, you must enroll in the marketplace by December 15.
- If Congress renews subsidies before the end of the year, many people will be able to change their plan to reduce costs. But if there is no extension, premiums will go up.
5. New restrictions affect immigrants with legal status
- A law passed in 2025 changed who is eligible for assistance. Starting January 1, 2026, many immigrants with legal status and incomes below 100% of the federal poverty level will no longer be eligible for Health Market subsidies.
- However, not all immigrants will be excluded. The restriction depends on immigration status and income, and some categories will remain eligible, such as certain immigrants with permanent residence or green cards and those from Compact of Free Association (COFA) countries, under specific conditions.
6. DACA recipients are no longer eligible for subsidies
- A new federal government rule, effective August 2025, revoked access for Deferred Action for Childhood Arrivals (DACA) recipients to Health Insurance Marketplace coverage, premium tax credits, and cost-sharing reduction assistance.
7. What you can do now and where to find help
- Go to HealthCare.gov or your state health marketplace as soon as possible to review available plans. Even though subsidies are in question, coverage is still available in many cases.
- Use the KFF subsidy calculator to estimate how much you would pay with and without tax credits. This will give you a realistic idea of the cost.
- Seek free local help. Many community organizations and health centers offer support to fill out applications, evaluate options, and understand immigration and income requirements as well.
- You can call the marketplace helpline at 1-800-318-2596 or visit www.healthcare.gov to find local assistance.
- You can also get help in your state by calling 2-1-1.
