The Affordable Care Act (ACA) is entering a new phase. The expanded federal premium assistance that helped stabilize the individual insurance market over the past several years officially ended on December 31, 2025. Those enhanced subsidies, which were introduced during the pandemic and extended through 2025, had softened premium costs and expanded eligibility for millions of Americans.
As of January 1, 2026, the ACA reverted to its pre-2021 subsidy framework. The result: higher premiums, renewed eligibility cliffs, and mounting confusion for employees and employers alike. For many households, individual market premiums have surged dramatically — often by double or even triple-digit percentages — putting marketplace coverage out of reach.
