DES MOINES, Iowa (Gray Media Iowa State Capital Bureau) — Enhanced premium tax credits have ended for Americans who purchased health insurance coverage through the Affordable Care Act. The previous taxpayer support meant significantly cheaper premiums for millions of Americans who made up to 400% of the federal poverty rate. So, now what?
Republicans in Congress chose to allow the tax credits to expire at year’s end. They have yet to approve legislation through both chambers that would reduce health care costs for Americans.
The Democratic-led Affordable Care Act/Obamacare helped millions of Americans gain access to health care insurance through its subsidies, but it did not lessen the cost of health care overall.
Congress may consider a variety of options in 2026 like re-establishing the enhanced premium tax credits for one, two, or three years. Or it could decide not to bring back those credits.
Some Republicans, including President Donald Trump, have suggested that Americans could receive federal assistance via a health savings account instead.
That could be cheaper for taxpayers compared to the Affordable Care Act subsidies, but it would likely also put more of the cost of health care insurance premiums on the recipients.
How is the higher cost of health care affecting you in 2026? Email Dave Price at dave.price@graymedia.com.
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