"Enhanced tax credits that have helped reduce the cost of health insurance for the vast majority of Affordable Care Act enrollees expired overnight, cementing higher health costs for millions of Americans at the start of the new year. Democrats forced a 43-day government shutdown over the issue. Moderate Republicans called for a solution to save their 2026 political aspirations. President Donald Trump floated a way out, only to back off after conservative backlash."
"The change affects a diverse cross-section of Americans who don't get their health insurance from an employer and don't qualify for Medicaid or Medicare - a group that includes many self-employed workers, small business owners, farmers and ranchers. It comes at the start of a high-stakes midterm election year, with affordability - including the cost of health care - topping the list of voters' concerns."
"The expired subsidies were first given to Affordable Care Act enrollees in 2021 as a temporary measure to help Americans get through the COVID-19 pandemic. Democrats in power at the time extended them, moving the expiration date to the start of 2026. With the expanded subsidies, some lower-income enrollees received health care with no premiums, and high earners paid no more than 8.5% of their income."
Enhanced premium tax credits tied to the Affordable Care Act expired at the start of the new year, raising insurance costs for millions who do not receive employer coverage and do not qualify for Medicaid or Medicare. The subsidies were first expanded during the COVID-19 pandemic and later extended through 2025, capping premiums for many enrollees and eliminating premiums for some lower-income people. Political efforts to preserve the subsidies—including a 43-day shutdown, intra-party negotiations, and proposals from the White House—failed before expiration. The change disproportionately affects self-employed workers, small-business owners, farmers, and middle-class families, and a future House vote could alter the outcome but is uncertain.
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