President Donald Trump signed into law a spending bill on Wednesday, ending the longest federal government shutdown in American history. For weeks, congressional Republicans and Democrats were deadlocked over extending expiring tax credits for more than 20 million people who purchase insurance through Affordable Care Act marketplaces.
The shutdown deal does not extend the tax credits. Instead, it calls for a December vote on the issue. The chances of extending the credits seem bleak, given that House Speaker Mike Johnson, R-La., has not agreed to a vote.
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Open enrollment season has begun for most Americans, and many are already facing steep cost increases. Premiums for Americans who receive insurance through their employer will increase by upwards of 7%, a reflection of higher spending on health care.
Meanwhile, premiums for individuals who purchase their insurance through the Affordable Care Act will rise by about 30%, not only due to rising health care spending but also because there are no more federal subsidies for most people.
Given the uncertainty and potential for large cost increases, here is how experts advise Americans to approach this year’s open enrollment.
What are the tax credits?
When the Affordable Care Act was first passed in 2010, it implemented federal subsidies that lowered the price of health insurance for low-income Americans. The American Rescue Plan Act of 2021 expanded the original subsidies to all Americans regardless of income and eliminated health insurance premiums for the lowest-income households. The Inflation Reduction Act of 2022 extended subsidies through 2025.
These provisions will expire in December unless the government votes to further extend them. Democrats and at least two Republican members of Congress have pushed to retain the subsidies, but many Republicans are resisting. Vice President JD Vance has said these credits fuel fraud.
Should Americans wait to purchase coverage?
As Straight Arrow News previously reported, experts advise that Americans begin the open enrollment process as soon as possible. Though chances are low, if Congress does vote to extend the subsidies, consumers can change their plans until Dec. 15 for plans beginning on Jan. 1, 2026.
Federal and state governments offer a service that helps Americans navigate the entire open enrollment process. Experts warn that numerous fraudulent websites offer these services.
For more information, check out Straight Arrow News’ comprehensive guides to health insurance and open enrollment.
