As the new year opens, millions of Americans are confronting a sudden and painful rise in health insurance costs, a development that has placed renewed strain on families already struggling with the rising cost of living.
Beginning January 1, enhanced federal tax credits that had helped many Americans afford health coverage under the Affordable Care Act expired, according to France 24. These subsidies had played a critical role in keeping premiums affordable for people who do not receive insurance through an employer and who are not eligible for Medicaid or Medicare, including self-employed workers, small business owners, farmers, and ranchers.
Health policy researchers estimate the impact will be severe. According to an analysis by the nonprofit health research organization KFF, more than 20 million subsidized Affordable Care Act enrollees are seeing their monthly premiums rise by an average of 114 percent in 2026. For some households, that increase represents hundreds of dollars more each month for basic health coverage.
The tax credits were first introduced in 2021 as a temporary response to the COVID-19 pandemic and were later extended by lawmakers. They allowed lower-income Americans to access coverage with little or no monthly premium, while capping costs for higher earners at no more than 8.5 percent of household income, according to France 24. The expiration of these measures has now reversed those protections.
For many families, the consequences are deeply personal. Katelin Provost, a 37-year-old single mother, shared that her monthly premium is set to increase from $85 to nearly $750. “It really bothers me that the middle class has moved from a squeeze to a full suffocation, and they continue to just pile on and leave it up to us,” Provost said, according to France 24. “I’m incredibly disappointed that there hasn’t been more action.”
Others are attempting to absorb the added cost, even when it means financial sacrifice. Stan Clawson, a 49-year-old freelance filmmaker and adjunct professor living with paralysis from a spinal cord injury, told France 24 that his premiums are increasing from just under $350 a month to nearly $500. While the increase is difficult, he said he cannot go without coverage due to his medical condition.
Health experts warn that rising premiums could push many Americans out of the insurance system altogether. According to France 24, analysts fear younger and healthier individuals may choose to forgo coverage, which could leave an older and sicker population behind and drive costs even higher over time. A separate projection by the Urban Institute and the Commonwealth Fund estimates that nearly 4.8 million Americans could drop coverage in 2026 as a result of the subsidy expiration.
The issue has also intensified political tensions in Washington. Democrats previously pushed to extend the subsidies and even forced a prolonged government shutdown over the matter, according to France 24. While some Republicans acknowledged the need for action, legislation was delayed, and the Senate ultimately rejected proposals in December that would have extended the tax credits. A House vote could still occur early this year, but its outcome remains uncertain.
For Catholics, the situation raises serious moral questions about the dignity of the human person and society’s obligation to care for the sick and vulnerable. As healthcare costs climb and coverage becomes harder to maintain, many families face choices that place financial survival in conflict with medical necessity.
Provost, speaking to France 24, said she may be forced to drop her own coverage while keeping insurance only for her young daughter if the subsidies are not restored. Others expressed frustration that political leaders seem disconnected from the daily realities of ordinary Americans. “They need to get to the root cause, and no political party ever does that,” said Chad Bruns, a 58-year-old Affordable Care Act enrollee from Wisconsin, according to France 24.
As Congress debates whether to revive the subsidies, millions of Americans are left navigating a healthcare system that has become increasingly difficult to afford, even as the need for care remains constant.
Your support brings the truth to the world.
Catholic Online News exists because of donors like you. We are 100% funded by people who believe the world deserves real, uncensored news rooted in faith and truth — not corporate agendas. Your gift ensures millions can continue to access the news they can trust — stories that defend life, faith, family, and freedom.
When truth is silenced, your support speaks louder.
