WASHINGTON, D.C. (WZMQ 19 News) — The clock continues to run out on the Biden-era enhanced Affordable Care Act subsidies, set to expire at the end of December.
If they vanish, the average monthly premium for more than 20 million recipients — like self-employed business owners, freelancers and early retirees — is expected to more than double in 2026, according to health policy and economic analysts. Open enrollment is underway, and Monday, Dec. 15, is the deadline to enroll in or change plans for coverage to start Jan. 1.
Democrats say Washington must extend the subsidies to prevent soaring premiums, but Republicans argue reform is necessary to stop billions of taxpayer dollars from lining the pockets of insurance companies.
On the Senate floor this week, Sen. Gary Peters, D-Mich., spoke about what Michiganders — including residents in the Upper Peninsula — are noticing as they shop for 2026 health care coverage on the ACA marketplace.
“For example, this year, an average plan for a 26-year-old living in Michigan’s Upper Peninsula costs about $340 a month. Next year, that monthly payment is scheduled to double, costing them $600 to $800 per month,” Peters said. “It’s simply unacceptable to let these subsidies expire and every single member of Congress knows it.”
“We can’t let corporate medicine or corporate profits overtake good medicine delivered at the local level so that people can get the results from their providers,” said Rep. Jack Bergman, R-Mich. “Put the money where it’s going to get the most effect and let the people make the decision.”
Two dueling proposals by Democrats and Republicans failed in the Senate on Thursday after neither plan reached the 60 votes necessary to break the filibuster and clear the Senate. The Democratic plan was a three-year extension of the COVID-era enhanced subsidies, and the GOP’s proposal promoted health savings accounts that would give dollars directly to patients instead of insurance companies.
Next week is the last chance for lawmakers to act before the enhanced tax credits expire at the end of the month.
