Bad news for Americans: Insurance premiums are going to skyrocket if Trump lets Obamacare subsidies expire
Once again Donald Trump’s economic plan is going to hit American workers where it hurts.
As 2025 draws to a close, Americans face another looming crisis thanks to Trump’s economic plan for the country, this time in terms of their healthcare.
The increased subsidies under the Affordable Care Act which were introduced by Biden during the COVID-19 pandemic are set to expire on December 31. If they are not renewed, millions could see their insurance premiums soar by up to 18% in 2026, potentially leaving over four million people uninsured and with nowhere to go.
The subsidies in danger of disappearing have been key for millions when it comes to reducing premiums on their skyrocketing healthcare bills. Obamacare is running out of road, fast, and there is no congressional agreement in sight. Without these premiums, which the conservatives want to cut, estimates are well into the millions when it comes to how many people will eventually lose out over the next few years.
Moreover, people who choose to go without insurance are often healthier than those who pay the full cost of coverage. This imbalance means that the average health risk of the insured population increases, forcing insurers to raise premiums for everyone.
POLITICO says that the average increase on insurance premiums will sit at around 18% - that means that at least half of all Americans will see their premium up by a fifth, with some states, such as California, expecting the number to be more around the 40% mark.
Of course, such stark numbers cannot be hidden by a wall of MAGA baseball caps and flags, with swathes of Republican voters said to be feeling the pinch. As such, a number of GOP lawmakers are stepping away from the party line and joining with Democrats in calls to extend the subsidies.
“There will be impacts before the ’26 midterms,” Bruce Siegel, president and CEO of America’s Essential Hospitals, told Politico, “If you’re running a health system and you’re looking at millions of dollars of cuts starting next year, assuming these changes go forth… What do you do?"
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