Quick Health Insurance Update: What’s Really Going on with ACA Tax Credits and Your Coverage

Hey friends — let’s clear the air.

You’ve probably heard something about “Congress,” “health insurance subsidies,” and “premium increases” in the news. That’s because right now there’s a lot of uncertainty in Washington about whether federal help that has made health insurance cheaper will continue in 2026.

Here’s the simple truth, without the politics:

What Are These ACA Tax Credits?

When people buy health insurance through the Affordable Care Act (ACA) Marketplace (think HealthCare.gov or your state exchange i.e. Connect for Health Colorado), most get premium tax credits. These credits lower what you actually pay each month. They’re a form of financial help from the federal government to make insurance more affordable. Center on Budget and Policy Priorities

Starting in 2021, Congress temporarily enhanced these credits to make coverage even cheaper — helping millions of people afford their plans. But those enhanced credits were scheduled to expire on December 31, 2025, unless Congress extends them.

What’s Happening in Congress Right Now

Right now, Congress has not passed a bill to extend the enhanced ACA tax credits.

• In the Senate, both a Democrat-sponsored extension and a Republican alternative failed to get enough votes. AP News

• In the House, leadership has introduced a health-care plan that doesn’t keep the enhanced credits in place. Reuters

• Time is running out — there’s only a few weeks left before the credits are scheduled to expire.

There are bipartisan efforts from some lawmakers to extend the credits, but as of now, nothing has passed.

What This Means for You (Plain English)

Here’s the part that matters most:

If Congress does nothing, the enhanced tax credits will expire on December 31, 2025.

That doesn’t mean the Marketplace tax credits completely disappear — it means they go back to the original levels from before 2021. Many people will still qualify for help, just not as much. CRFB

So if you:

• Already get help reducing your premiums…

• Plan to enroll for 2026 coverage…

• Or are wondering what to do next…

Your costs may go up starting in 2026 if the enhanced credits expire. Experts project that for lots of people, your portion of the premium could more than double compared with what it would be if the enhanced credits stayed in place. KFF

That’s not because plans themselves are suddenly worse — it’s because there’s less federal help to offset the cost.

Important Deadline

Open Enrollment for 2026 coverage ends Monday, December 15 in most states for plans that start January 1, 2026.

Even with the uncertainty in Congress, your best move is to make sure you’re enrolled if you need coverage. Nothing about the deadlines has changed.

Don’t Panic — Here’s What You Can Do

This isn’t a moment to freeze up. Here’s how to handle it:

✔ Enroll or renew your plan before Dec. 15 to guarantee coverage on Jan. 1.

✔ Update your income estimate in your Marketplace application — tax credits are based on income, so getting this right now helps avoid surprises later.

✔ Compare plans — if premiums go up, a different metal level could be a better fit.

✔ Reach out if you’re unsure — I’m here to help you walk through your options.

Bottom Line

• The enhanced subsidies that have kept many premiums low are currently set to expire at year’s end. CRFB

• Congress hasn’t extended them yet. AP News

• If nothing changes, your costs could be significantly higher in 2026. KFF

• You still have time to enroll — and that’s the most important thing right now. 

I’m doing my best to keep you informed, and ready. If you’re worried about costs or have questions about your coverage, don’t hesitate to reach out — we’ll walk through it together.

— Krystin Godoy