Summary
The expiration of certain Affordable Care Act (ACA) subsidies has brought health care costs into focus. The government is paying slightly less of health insurance premiums now that temporary pandemic-era subsidies have ended, especially affecting higher-income households. The article argues that these subsidies only address symptoms rather than the underlying causes of rising health care costs.
Key Facts
- Some ACA subsidies expanded during the pandemic expired at the end of 2025.
- The federal government's share of premium costs decreased from 88% to 83%.
- Lower-income individuals continue to receive substantial ACA subsidies.
- Middle- and higher-income households experienced the greatest impact from these changes.
- Rising premiums create financial stress but extending subsidies doesn't lower overall health care costs.
- The ACA expanded coverage but struggled to control the prices consumers and insurers pay.
- Subsidies can hide true insurance costs and weaken competition's ability to limit price rises.
- Effective reform would address the power dynamics in health care markets and promote genuine competition.
