Who will be impacted by ACA tax subsidies expiring in the New Year?

By Isabella Warren

Published: Dec. 23, 2025 at 6:00 PM CST

DES MOINES, Iowa (Gray Media Iowa Capitol Bureau) - Millions of Americans will ring in the new year with higher healthcare premiums after Congress chose not to extend some of the Affordable Care Act’s tax subsidies before adjourning for the year.

Bartenders, small business owners and farmers represent some of the millions of Americans expected to lose health care tax subsidies when enhanced Affordable Care Act credits expire January 1.

Congress expanded the subsidies during the pandemic to help offset rising health insurance costs.

Seth Watkins raises beef in Southwest Iowa and says his premiums will now triple. “We’re looking at our premiums going from probably $600 a month to $2,300 a month for the bronze plan,” Watkins said. “And we’re seeing our out-of-pocket expenses go from $7,500 to $9,200 per person, $18,400 max. So quick math on that, that’s looking at about $42,000, $43,000 a year for healthcare.”

People like Watkins, primarily those in the middle class who do not receive insurance through an employer, make more than four times the federal poverty level or retired before they’re eligible for Medicare, will be among the hardest hit when the new year begins.

For them, Affordable Care Act health insurance plans have usually been the cheapest option.

Congress has adjourned for the year without coming to a decision on the tax subsidies. That means, at least temporarily, millions of Americans will see higher health care costs starting January 1. Phil Jeneary is the executive director of Iowans for Affordable Healthcare. He says families are waiting for Congress to act.

“We’re sort of at a standstill,” Jeneary said. “There are millions of Americans and about over 130,000 Iowans that are really trying to make plans and really paying attention to what Congress is going to be doing.”

Advocates warn that higher premiums could force many Iowans to go without coverage altogether. https://www.kcrg.com/2025/12/24/who-will-be-impacted-by-aca-tax-subsidies-expiring-new-year/