ACA Subsidies and Health Insurance Costs in 2026

As 2026 begins, Americans seeking health insurance through the Affordable Care Act (ACA) Marketplace are facing a changing landscape of subsidies and potential costs. Temporary expansions to ACA subsidies, enacted during the COVID-19 pandemic, expired at the conclude of 2025, leading to adjustments in premium costs for many enrollees. Understanding these changes and available resources is crucial for navigating health insurance options.

Understanding the Affordable Care Act Subsidies

The ACA, passed in 2010, aimed to expand health insurance coverage and reduce healthcare costs. A key component of the law is the provision of financial assistance to eligible individuals and families to make health insurance more affordable. These subsidies come in two primary forms:

• Premium Tax Credits: These credits lower the monthly cost of health insurance purchased through the ACA Marketplace. They are often delivered in advance as Advance Premium Tax Credits (APTCs), directly reducing the monthly premium payments.
• Cost-Sharing Reductions: These reductions lower out-of-pocket costs, such as deductibles and copayments, for eligible enrollees.

The Impact of Expiring Subsidies

The temporary subsidy expansions, implemented in 2021, significantly increased eligibility for premium tax credits and reduced the amount individuals had to contribute towards their premiums. With the expiration of these enhancements on December 31, 2025, many enrollees are now facing higher premium costs in 2026. According to a KFF analysis updated on October 29, 2025, average premium payments are estimated to increase by 114%, or approximately $1,016 per year, without the enhanced premium tax credits [1].

Estimating Your Costs and Eligibility

Determining your eligibility for subsidies and estimating your potential costs requires considering several factors:

• Household Income: Subsidies are based on your household’s adjusted gross income (AGI). It’s important to estimate your income accurately for the coverage year, not based on the previous year’s income. The Healthcare.gov website provides resources and a calculator to help with this estimation [2].
• Household Size: Include yourself, your spouse (if married), and all individuals you will claim as tax dependents, even if they don’t need coverage.

You can use the KFF’s ACA Enhanced Premium Tax Credit Calculator to estimate your potential premium costs with and without the enhanced tax credits [3].

Where to Discover More Information and Enroll

For more information and to enroll in a health plan, visit:

• HealthCare.gov: The federal Health Insurance Marketplace.
• Your State’s Health Insurance Marketplace: If your state operates its own Marketplace.
• Your State’s Medicaid Program Office: To check eligibility for Medicaid or the Children’s Health Insurance Program (CHIP).

Looking Ahead

The expiration of the enhanced ACA subsidies represents a significant shift in the health insurance landscape. Individuals and families should carefully evaluate their options, utilize available resources to estimate their costs, and explore all available financial assistance programs to ensure they have access to affordable health coverage in 2026, and beyond. Continued monitoring of policy changes and updates to federal poverty guidelines will be essential for navigating the evolving healthcare system.