Some Americans say they’ll go without health insurance as ACA rates spike

When Kassidy Hooter learned in December how much her health insurance costs would rise this year, she panicked.

The Shreveport, Louisiana, resident and mother of three knew she desperately needed care — Huth was in the last trimester of a high-risk pregnancy. But because of federal taxes, the family can no longer afford coverage under the Affordable Care Act plan Subsidy is about to expire On December 31, 2025, that means they will face thousands of dollars in additional out-of-pocket costs.

“We seriously considered that it might be cheaper to have a home birth,” Huth, 24, told CBS News. “Just because of the huge debt involved.”

Ultimately, Hooter decided to drop insurance altogether.

A local medical center offered three months of financial assistance to help her get through her due date in February. Entering late March. Thereafter, she will be responsible for all medical expenses herself. Her plan now is to get her newborn on Medicaid, the government health program for low-income Americans, as soon as possible.

“I just hope everything goes well,” she told CBS News.

Health insurance becomes a “luxury product”

Nima Sheth, vice president for health justice at the National Partnership for Women and Families, a nonprofit advocacy group, said the Affordable Care Act has played an important role in reducing the share of uninsured Americans from about 15 percent to 8 percent since its introduction in 2010.

However, experts warn that the number of people without health insurance could surge if Congress fails to come up with a solution for the 22 million Americans who receive ACA tax credits. The Congressional Budget Office estimated in 2024 that if the credit line is not extended, the number of uninsured people will increase by an average of 3.8 million per year from 2026 to 2034.

Americans in most states have until January 15 to enroll in an ACA marketplace plan, according to healthinsurance.org.

KFF, a nonprofit provider of health policy news and research, estimates that without the tax credit, premiums for ACA enrollees who previously relied on subsidies would increase by an average of 114%.

“What we’re seeing here is a policy choice that actually turns insurance into a luxury product and medical debt into a default,” Michelle Sternthal, interim senior director of policy and strategy at the health care advocacy group Community Catalyst, told CBS News.

House of Representatives Thursday Three-year extension approved Expired ACA tax credits. The legislation faces a tough test in the Republican-led Senate, although lawmakers believe it could provide a starting point for a compromise that would keep the credit alive in some form.

“This is an incredibly heavy burden for me to bear”

Plantation, Fla., resident Stacy Kanas, whose family also received ACA tax credits, is now considering canceling health insurance after realizing her and her husband’s monthly premiums would rise to $2,500, more than double what she paid last year for them and her 20-year-old daughter.

“It was very burdensome for me,” Canas, 59, told CBS News. “My husband had major surgery about five years ago and we didn’t want to be without insurance.”

Despite his good health, the small business owner worried about what would happen if someone in his family became seriously ill. “It only takes one catastrophic event to put you in a position of financial disaster,” she said.

Even people who keep their ACA coverage may end up skipping care to avoid out-of-pocket costs, experts say.

“If you’re underinsured and have a high deductible, you’re getting coverage that’s designed to prevent you from getting care, including preventive care, so you’re going to delay care until there’s an emergency,” Sternthal said.

Robert Myers, a consultant outside St. Louis, Missouri, signed up for a Silver ACA plan last year but switched to a Bronze plan after learning his premiums would rise from $17 a month to $400 a month in 2025.

Under his new plan, the 31-year-old doesn’t have to pay monthly premiums. However, with an $80 copay and an $8,000 deductible, Miles may be responsible for more out-of-pocket costs. As a result, he plans to visit the doctor less often, a trend that experts say ultimately leads to more emergency room visits.

“They’ll go to the emergency room, get a Band-Aid to fix what they need, and then don’t get long-term care,” Sheth said.

Sternthal said this could have broader ripple effects, as an increase in uncompensated hospital care could increase costs for other patients as providers try to recoup costs.

“Every delay leaves families making decisions that harm their health and financial stability, but also impacts businesses and local communities,” she said.