Trump’s ‘Big Ugly’ Law Set to Trigger Soaring Premiums and Cut Health Subsidies

August 20, 2025

The newly signed "One Big Beautiful Bill" (also called the "Big Ugly Bill") is projected to cause health insurance premiums to rise significantly by 2026, with a median increase of 15% nationwide in ACA marketplaces. The legislation eliminates enhanced premium tax credits that have helped over 24 million Americans afford health coverage, resulting in individual premium payments increasing by more than 75% on average for subsidy recipients. Additionally, tariffs on imported goods including pharmaceuticals are compelling insurers to raise premiums beyond medical inflation rates.

Who is affected

More than 24 million people who currently receive enhanced premium tax credits
Low-income Americans who may lose coverage due to affordability issues
Black and Hispanic adults who already report high rates of unmet care needs
Uninsured individuals and people in poor health
All ACA marketplace insurance customers facing premium increases

What action is being taken

Insurance companies are filing for significant premium increases, with a median projected increase of 15% nationwide
More than a quarter of insurance companies are seeking increases of 20% or more
Insurers are specifically raising rates to account for tariffs on imported pharmaceuticals, with increases ranging from 2.2% to 3.6% above standard increases
Insurance companies are warning about a deteriorating risk pool as healthy individuals exit the market

Why it matters

Individual premium payments will increase by more than 75% on average for those receiving subsidies
The U.S. already spends more on healthcare than other wealthy nations ($13,432 per person in 2023)
Nearly 30% of U.S. adults delayed or skipped medical care due to cost in 2023
About 16% of Black adults reported family difficulties paying medical bills
The changes may cause healthier individuals to exit the market, leaving a sicker and more expensive risk pool
None of the 105 ACA insurers reviewed proposed cutting premiums for 2026

What's next

No explicit next steps stated in the article

Read full article from source: The Washington Informer