Health Insurance Crisis
Kassidy Hooter, a 24-year-old mother of three from Shreveport, Louisiana, was faced with a daunting decision when she learned that her health insurance costs would rise significantly in 2026. With a high-risk pregnancy, Hooter knew she needed urgent care, but the family could no longer afford coverage under the Affordable Care Act (ACA) due to the expiration of federal taxes on December 31, 2025. This meant they would face thousands of dollars in additional out-of-pocket costs.
The Consequences of Expired Tax Credits
The Hooter family is not alone in their struggle. The expiration of the ACA tax credits has left many Americans facing significantly higher health care costs. Without the tax credits, premiums for ACA participants who previously relied on the subsidies are estimated to increase by an average of 114%. This has turned health insurance into a luxury item, making it unaffordable for many families.
The Impact on Uninsured Americans
Since its implementation in 2010, the ACA has been instrumental in reducing the share of uninsured Americans from about 15% to 8%. However, the number of people without health insurance is likely to rise sharply if Congress doesn’t find a solution for the 22 million Americans who received an ACA tax credit. Experts warn that without an extension of the credit, the number of uninsured will increase by an average of 3.8 million each year from 2026 to 2034.
Forgoing Insurance and Medical Care
Many Americans, like Hooter, are being forced to forgo insurance altogether or limit their medical care to avoid out-of-pocket costs. This can have serious consequences, including delayed care and increased emergency room visits. Experts say that even people who keep their ACA insurance coverage may end up forgoing care to avoid out-of-pocket costs, which can lead to poor health outcomes and financial disaster.
The Human Cost
The impact of the expired tax credits is not just financial; it also has a human cost. Families are being forced to make difficult decisions about their health care, and many are going without necessary medical care. This can have long-term consequences for their health and financial stability. As Michelle Sternthal, interim senior director of policy and strategy at the health care advocacy group Community Catalyst, said, "Any delay forces families to make decisions that harm their health and financial stability, but then also impacts the business community and the local community."
A Possible Solution
The House of Representatives has approved a three-year extension of the expired ACA tax credits, but the bill faces an uphill climb in the Republican-led Senate. Lawmakers believe that it could provide a starting point for a compromise that would keep the loans alive in some form. However, for many Americans, like Hooter and her family, the solution cannot come soon enough. As Hooter said, "I just hope for the best."
