Affordable Care Act: Congress leaves for holidays without deal to extend health care subsidies

WASHINGTON (KGO) — The U.S. House and Senate cast their final votes of the year on Thursday before heading into winter recess — without passing a deal to extend federal healthcare subsidies.

That decision sets the stage for a steep rise in health insurance costs for millions of Americans starting Jan. 1.

Monday marked the deadline for Covered California enrollees to select their health plans for 2026, with many waiting until the last minute hoping for congressional action. But now with lawmakers on break, consumers who rely on Affordable Care Act coverage will see premiums climb significantly in the new year.

“What people are actually paying for their coverage is set to double,” said Jessica Altman, executive director of Covered California.

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Altman warns that middle-income families will feel the biggest pinch. While most enrollees will still receive tax credits, they’ll be less generous — and some middle-income consumers will lose eligibility altogether.

“That’s where we’ll see an average of $500 a month more in cost for those middle-income consumers. And that is a huge increase,” Altman said.

According to a Kaiser Family Foundation analysis, ACA enrollees currently pay about $74 a month in premiums on average. With enhanced tax credits expiring December 31, that figure will jump to roughly $158 a month.

Representative Kevin Mullin, D-San Mateo, said his office is already hearing from constituents bracing for massive hikes.

“Just today, my office talked to a woman whose premiums are going to go up a minimum of $1,000 a month if we don’t take action,” Mullin said, calling the lack of urgency “frustrating.”

MORE: Congress gridlocked as Affordable Care Act subsides set to expire, driving up health care costs

Republican Representative Kevin Kiley, R-Roseville, expressed bipartisan frustration.

“The leadership of the two parties spend so much of their energy trying to figure out how to blame the other side for problems, rather than actually working together to solve those problems,” Kiley said. “If people don’t see action here, I think they will rightly hold Congress accountable.”

Altman warns the ripple effects could hit hospitals and clinics as more patients show up uninsured and unable to pay.

“They’re looking at more patients coming in uninsured and maybe unable to pay for their coverage that can impact their sustainability,” she said.