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Worried About Health Insurance Costs? There May Be Cheaper Options — But With Trade-Offs

December 26, 2025

Millions of Americans shopping for Affordable Care Act insurance face significantly higher costs in 2026 due to premium increases and the expiration of enhanced tax subsidies that were introduced during the pandemic. Many consumers are searching for more affordable alternatives, including short-term plans and faith-based sharing arrangements, though experts warn these options come with substantial risks and coverage gaps. Insurance brokers and marketplace representatives are fielding concerns from people with complex medical needs who fear losing access to necessary care.

Who is affected

  • Millions of Americans who purchase Affordable Care Act insurance on marketplaces
  • People with complex medical conditions requiring ongoing access to medical care
  • Lower-income individuals earning less than $25,000 annually who previously qualified for low-cost or free plans with enhanced subsidies
  • Households earning more than four times the poverty level ($62,600 for individuals, $84,600 for couples) who will lose subsidy eligibility entirely
  • Insurance brokers and representatives at ACA marketplace call centers fielding consumer questions
  • Self-employed individuals with single employees who may qualify for group plans
  • The Massachusetts Health Connector and other state insurance marketplaces

What action is being taken

  • Four GOP moderates are joining with Democrats to sign a discharge petition to force a vote on a three-year subsidy extension
  • The House passed a package of conservative measures (that does not address subsidies)
  • Concerned shoppers are consulting insurance brokers and talking to representatives at ACA marketplace call centers
  • California's ACA exchange is noticing an uptick in enrollments in bronze-level plans
  • Insurance brokers are showing clients bronze plans and exploring group plan options to reduce monthly costs
  • Consumers are shopping around and considering different plan levels and insurers

Why it matters

  • The expiration of enhanced tax subsidies represents a significant financial burden for millions of Americans who rely on ACA marketplace insurance, potentially forcing difficult choices between affordability and adequate coverage. For individuals with complex medical conditions or chronic health needs, losing access to comprehensive insurance could be life-threatening. Lower-income individuals face particularly stark tradeoffs, where switching to more affordable bronze or catastrophic plans means accepting deductibles of $6,000-$10,000 that are economically devastating for someone earning $25,000 annually. The situation also creates risk that desperate consumers may turn to non-ACA compliant alternatives like short-term plans, indemnity plans, or faith-based sharing arrangements that offer inferior coverage, exclude preexisting conditions, and may leave policyholders exposed to catastrophic medical bills despite paying premiums.

What's next

  • The official open enrollment deadline is January 15 for coverage starting February 1
  • A discharge petition vote on the three-year subsidy extension is likely to occur in January
  • If the extension passes the House vote, it would still need Senate approval and President Trump's signature
  • If extended, the subsidies could be applied retroactively
  • Consumers need to pay their first month's premium for coverage to take effect

Read full article from source: The San Diego Voice & Viewpoint

Worried About Health Insurance Costs? There May Be Cheaper Options — But With Trade-Offs