Millions drop Obamacare health coverage after subsidies expire and costs rise

June 27, 2026 - 22:09

NEW YORK - The number of Americans enrolled in Affordable Care Act health insurance plans fell by roughly 3 million in February compared to the same month last year, according to new data. The sharp decline comes after temporary subsidies that had lowered premiums for many policyholders expired at the end of 2025.

Without those enhanced tax credits, monthly payments for many middle-income households jumped significantly. Some families saw their premiums double or even triple, making coverage unaffordable. As a result, a large number of people simply stopped paying their bills or did not renew their plans.

The drop was most noticeable among people who bought plans on the federal marketplace, Healthcare.gov. Enrollment had surged during the pandemic when the extra subsidies were in place, reaching record highs. But the expiration of that financial help has reversed much of that growth.

Insurance experts warn that the loss of coverage could leave millions without access to routine medical care or protection against major medical bills. Some states that run their own marketplaces have also reported similar declines. The situation has renewed debate in Washington over whether to restore the subsidies, but no major legislative action is expected in the near term. For now, many Americans are left to decide between paying for expensive insurance or going without.