Healthcare Costs Soar Amid Government Shutdown: Insurers Prepare for Loss of Customers as Tax Credits Hang in the Balance
As the US government shutdown enters its fourth week, millions of Americans are bracing themselves for potentially devastating healthcare cost increases. The latest round of Obamacare premiums has seen some health insurers hike prices by a staggering 20-25%, with even higher jumps reported by some companies.
For consumers who can't afford the increased costs, health insurance executives are predicting a massive exodus from the market. According to Sarah London, CEO of Centene, one of the nation's largest providers of Obamacare plans, "We are supporting a population staring down (enhanced premium tax credit) expiration and potentially the wholesale loss of affordable healthcare coverage next year."
The price hikes are largely driven by the expiration of enhanced premium tax credits in 2026, which were a key factor in keeping premiums low for millions of Americans. The credits offer subsidies to individuals who purchase health insurance through the ACA, but Republicans in Congress are opposed to extending them.
As a result, health insurers have begun to retreat from selling individual coverage under the ACA, with some companies planning to exit the market altogether. UnitedHealthcare, the nation's largest health insurer, is expecting to lose two-thirds of its 1.7 million Obamacare enrollees if Congress fails to act.
"We believe these actions will establish a sustainable premium base — while likely reducing our ACA enrollment by approximately two-thirds," said UnitedHealthcare CEO Tim Noel. "These actions should drive margin improvement in our employer and individual segment in 2026 — though still below our targeted 7–9% range."
For health insurers, the situation is dire. Without the tax credits, they risk losing millions of customers who can't afford to pay more for coverage. Meanwhile, consumers are facing potentially devastating price hikes that could leave them without access to affordable healthcare.
As Congress struggles to find a solution, health insurance executives are holding out hope that lawmakers will come to an agreement on re-opening the government and extending the tax credits. "Congressional dialogue around (enhanced premium tax credits" has gained traction in recent weeks," London said. "While our products are priced to support year-over-year margin improvement in the scenario where (enhanced advance premium tax credits) expire, we believe these tax credits offer critical support for hardworking Americans, small business owners and rural healthcare infrastructure."
As the US government shutdown enters its fourth week, millions of Americans are bracing themselves for potentially devastating healthcare cost increases. The latest round of Obamacare premiums has seen some health insurers hike prices by a staggering 20-25%, with even higher jumps reported by some companies.
For consumers who can't afford the increased costs, health insurance executives are predicting a massive exodus from the market. According to Sarah London, CEO of Centene, one of the nation's largest providers of Obamacare plans, "We are supporting a population staring down (enhanced premium tax credit) expiration and potentially the wholesale loss of affordable healthcare coverage next year."
The price hikes are largely driven by the expiration of enhanced premium tax credits in 2026, which were a key factor in keeping premiums low for millions of Americans. The credits offer subsidies to individuals who purchase health insurance through the ACA, but Republicans in Congress are opposed to extending them.
As a result, health insurers have begun to retreat from selling individual coverage under the ACA, with some companies planning to exit the market altogether. UnitedHealthcare, the nation's largest health insurer, is expecting to lose two-thirds of its 1.7 million Obamacare enrollees if Congress fails to act.
"We believe these actions will establish a sustainable premium base — while likely reducing our ACA enrollment by approximately two-thirds," said UnitedHealthcare CEO Tim Noel. "These actions should drive margin improvement in our employer and individual segment in 2026 — though still below our targeted 7–9% range."
For health insurers, the situation is dire. Without the tax credits, they risk losing millions of customers who can't afford to pay more for coverage. Meanwhile, consumers are facing potentially devastating price hikes that could leave them without access to affordable healthcare.
As Congress struggles to find a solution, health insurance executives are holding out hope that lawmakers will come to an agreement on re-opening the government and extending the tax credits. "Congressional dialogue around (enhanced premium tax credits" has gained traction in recent weeks," London said. "While our products are priced to support year-over-year margin improvement in the scenario where (enhanced advance premium tax credits) expire, we believe these tax credits offer critical support for hardworking Americans, small business owners and rural healthcare infrastructure."
it's like they're being held hostage by the gov't shutdown. Insurers are gonna lose a ton of customers if those tax credits expire. It's not just about the money tho, it's about people's health & wellbeing 
. I hope congress gets its act together soon & finds a solution. We cant keep going back & forth like this 
. It's time for some common sense & cooperation 
This is so messed up! I just can't imagine having to deal with higher health insurance premiums and losing my coverage because of the government shutdown. Like, what's the point of even having a plan if it's gonna get taken away from me? 
And what about people who already have cancer or some other chronic illness that requires expensive treatment? They're not just gonna magically make themselves better because Congress can't agree on stuff 
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. This whole thing is a total disaster 
This is getting crazy... how are people supposed to afford healthcare if insurance companies keep raising prices? I feel like they're just trying to get rid of all the low-income folks who need it most. Like, what's the point of having a plan that costs $1k+ a month if you can't even afford to pay it?
... what's gonna happen next? 
... tax credits r crucial for affordable care & it's sad that reps r opposing them 
... hope lawmakers come together soon & save the day 
this is getting crazy. if congress cant figure out how to keep ppl from losin their health insurance, whats gonna happen next? like, are they just gonna let people go without coverage? thats a nightmare. and what about those ppl who are already strugglin to pay bills as it is? they're gonna lose even more. its not like there's another option or somethin. 
2026 cant come soon enough tho 
lets hope cong is smart & gets the gov shutdown resolved ASAP 
centene ceo sarah london said it all - its not just abt money, its about ppl having access to healthcare 
. The government shutdown is already causing so much stress for people, and now they're worried about losing their health insurance? It's like, come on, Congress! Get your act together and figure out how to keep these subsidies going. The fact that some insurers are planning to leave the market altogether is just crazy. I mean, who wants to pay more for healthcare when you can't afford it? 
insurance companies are just gonna sit back and collect the higher premiums they've already set, without considering anyone else but themselves. it's all about profits over people 
Like, shouldn't they be working with the government to find a solution instead of just taking advantage of the situation? 
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and i feel like we're seeing some really scary numbers here - 20-25% hikes? that's a huge chunk of change for anyone's budget! 