Name: Millions facing health care cost increases as tax credits lapse
Uploaded: 2026-01-02T08:42:15.356Z
Duration: 2 min 12 s
Description: Enhanced tax credits that have helped reduce the cost of health insurance for the vast majority of Affordable Care Act enrollees expired overnight as 2026 arrived, cementing higher health costs for millions of Americans at the start of the new year.

Enhanced tax credits that have helped reduce the cost of health insurance for the vast majority of Affordable Care Act enrollees expired overnight as 2026 arrived, cementing higher health costs for millions of Americans at the start of the new year.

Washington

As the new year began, government subsidies that helped millions of Americans pay for health insurance premiums under the Affordable Care Act expired. Without renewed Congressional action, approximately 22 million people are now facing substantial increases in their out-of-pocket health care expenses. 

The lapse in tax credits has led some, like retired engineer Brad Korb, to consider dropping their health insurance due to costs tripling overnight. A House vote to address the situation is expected later in the month, but until then, many Americans remain uncertain about their health care coverage.

Millions facing health care cost increases as tax credits lapse

When the clock struck midnight a new year began and something critically important to many Americans ended. I'm talking about government subsidies to help pay health insurance premiums under the Affordable Care Act. Unless Congress acts, millions of people are facing big increases in their health care bills. Here's CBS's Nicole Skanga. Brad Korb spent 30 years as an engineer for Boeing and never thought much about health care insurance. But when he retired in 2020, tax credits helped him afford a plan in the marketplace. Overnight, those credits expired. We considered, you know, should I just not even have health insurance? Korb's policy will now triple from roughly $300 per month to nearly 1000. He's one of roughly 22 million Americans who will see significant spikes in their out of pocket health care costs. You know, my wife and I had a big discussion about where are we going to get this money from? You have to tap into your retirement savings now in order to cover your health care costs. Absolutely. That's the only way to make it happen. Last fall, a fight in Congress over the extension of Affordable Care Act credits led to a 43 day government shutdown. Lawmakers were unable to come up with an agreement before winter break. Their holiday gift to the American people is to continue to try to block our ability to extend the Affordable Care Act tax credits. President Trump supports granting federal money to individuals, not the insurance companies. But the White House has yet to release a plan. I want that money to go to the people directly and let the people buy their own health care. But for enrollees like Korb, health insurance coverage feels like an impossible choice. You know, I hope that that Congress will decide that helping the average American is is important. And right now, I don't feel like that's the case. And a House vote to counter those increased costs is expected later this month. But the outcome remains uncertain. Until then, millions of Americans are beginning 2026 the way they ended 2025 waiting and worrying Jerica Nicole Skanga in Washington. Thank you.

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