Fri Jul 18 17:10:00 UTC 2025: ## Obamacare Premiums Set to Skyrocket in 2025 as Subsidies Expire
**Washington, D.C.** – Millions of Americans who rely on the Affordable Care Act (ACA) marketplace for health insurance are bracing for a significant premium hike in 2025, according to a new analysis from KFF, a nonpartisan health policy research group. The average premium for ACA plans is projected to increase by a staggering 75% due to the expiration of enhanced premium tax credits that were implemented during the COVID-19 pandemic.
These subsidies, which dramatically lowered costs for individuals and families purchasing insurance through Healthcare.gov and state-based exchanges, are set to expire at the end of the year. Experts warn that this will likely lead to a substantial increase in the number of uninsured Americans, potentially reversing recent gains in coverage.
“Pretty much every insurance company is talking about the expiration of enhanced premium tax credits in the ACA markets,” said Cynthia Cox, director of the Program on the Affordable Care Act at KFF. She explained that insurance companies are anticipating a sicker risk pool as healthier individuals, unable to afford the higher premiums, drop their coverage. This, in turn, drives up costs for those who remain insured.
The Congressional Budget Office (CBO) estimates that letting the subsidies expire would increase the number of uninsured by 4.2 million people. However, KFF’s analysis estimates that 8.2 million people who get ACA insurance now will become uninsured due to the expiration of the enhanced tax credits along with other changes the Trump administration and Congress have made to the marketplaces.
The potential premium hikes are already sparking debate in Congress. While Democrats are likely to push for an extension of the subsidies, Republican lawmakers have expressed opposition, arguing that they perpetuate a cycle of rising premiums and federal bailouts.
“The Republican Study Committee’s 2025 fiscal budget said the enhanced subsidies only perpetuate a never-ending cycle of rising premiums and federal bailouts — with taxpayers forced to foot the bill.”
The expiration of the subsidies could disproportionately affect states with high enrollment in ACA plans, including several Republican-leaning states like Texas, Florida, and Georgia. The possibility of millions losing coverage in these states could create significant political pressure as the debate unfolds.
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