Fed healthcare subsidy non-renewal could mean massive insurance hikes amNewYork

"A failure by Congress to extend federal healthcare subsidies in place for five years since the pandemic could mean many thousands of New York City residents would greet the new year with massive rate hikes or no insurance. The federal government shutdown occurred largely over a fight over whether to renew these enhanced benefits as part of the federal budget, but the absence of the extension as the year draws to a close is bumping up against a very real deadline."

"Right now in New York and nationwide, there is a crisis within the healthcare system, involving a great deal of uncertainty whether individuals will be able to afford coverage, EmblemHealth Executive Chair Karen Ignagni said. We're coming up on this deadline where subsidies end on December 31. People are in the dark about whether they can afford coverage. Since enhanced tax credits were enacted in 2020, marketplace coverage has grown to 24.3 million in 2025 as premiums dropped, according to health insurance industry estimates."

Enhanced federal healthcare subsidies enacted during the pandemic are scheduled to expire on December 31, creating urgent affordability concerns and uncertainty for consumers. A federal budget fight and a government shutdown have left extension unresolved as the deadline approaches. Legislation passed in July prohibits legally immigrating individuals from receiving government-funded insurance subsidies. Marketplace enrollment grew to 24.3 million in 2025 after enhanced tax credits lowered premiums. If enhanced subsidies sunset, average premiums could rise about 75% nationwide, about 38% in New York, and up to 90% in many rural areas, with monthly costs increasing roughly $114 for individuals and $228 for couples.

Read at www.amny.com