Hoosiers could face higher health care premiums in 2026 as tax credits reach expiration

When Andrea Knox-Kelecy opened up a letter from her health insurance provider two weeks ago, she was shocked at the price she saw.

“Starting in January, your new monthly payment is estimated to be: $2,262.64,” her letter from Ambetter Health stated.

“It was preposterous,” Knox-Kelecy said in a phone call to the News and Tribune Friday. “What in the world are they thinking?”

Knox-Kelecy joins a host of other Americans questioning the affordability of their health care this year, preparing to face higher premium payments as some government subsidies helping people afford coverage are set to expire.

More than 300,000 Hoosiers benefit from the tax credits helping lower premiums under the Affordable Care Act — but with an ongoing struggle in the White House regarding the fate of the subsidies post-government shutdown, that financial assistance could go away Dec. 31. Indiana insurance companies are raising Affordable Care Act premiums for 2026 by an average of 20%, according to marketplace filings.

Extending the subsidies, which were introduced in 2021 to help some Americans stay insured during the COVID-19 pandemic, became a key demand of U.S. Democrats during the longest government shutdown in history.

On Wednesday, the Senate voted on a funding deal to end the shutdown, but the fate of the tax credits has yet to be resolved. Senate Republicans, most of whom said they did not want to support an extension, agreed to hold a separate vote on the issue by mid-December in a trade-off to secure the Democratic votes necessary to re-open the government.

But if a vote does take place, it may or may not succeed, and without the tax credits, independent health policy research nonprofit KFF estimates out-of-pocket premium prices will more than double next year for most enrolled.

Knox-Kelecy, who turns 65 next August, makes enough income to where she doesn’t rely on the subsidies herself. But like many Americans, she’s watching her insurance prices rise, and she worries about those without employer-sponsored insurance or who do benefit from the credits that have lowered health care prices for years.

“My guess is that insurers think many people are going to drop their insurance because they can’t afford it, so they’re pre-emptively loading up on the rest of us,” she said.

Before her premium suddenly spiked in October, a typical payment for Knox-Kelecy would have been around $659. She said she expected a bit of an increase next year, but her Ambetter letter hit her with a bill nearly three times her usual.

The Floyd County resident said she is healthy and has almost no claims, aside from a pre-existing osteoporosis diagnosis. She said she feels lucky to only have seven more months until she can switch to Medicare, where she expects better coverage and more reasonable premiums.

Knox-Kelecy said she is thinking of going with CareSource, a public health care program that provides programs including Medicaid, Medicare and Marketplace. She’s considering a bronze plan costing just under $1,100 a month, an extra $400 she said she will be able to pay for by pulling a bit more out of her 401K.

Until then, she plans to scrape by so as not to get caught without insurance.

“I’m just going to make it work,” she said.

While Knox-Kelecy plans to change her coverage next year, the issue is bigger than her, she said. She recently sent letters to Rep. Erin Houchin, Sen. Jim Banks and Sen. Todd Young, all Republicans who represent Indiana, to ask what they plan to do to fight for affordable Hoosier health care.

Houchin did not respond to a request for comment by the time of publication, but Banks shared a statement with the News and Tribune in an email expressing his distaste for extending tax credits.

“Obamacare isn’t working,” he wrote. “Premiums keep climbing, and giving out more taxpayer subsidies isn’t the answer. Instead of working with Republicans on real fixes, Democrats shut down the government for 43 days and are already threatening another shutdown in January.”

Leah Selk, a press secretary for Young, wrote: “Now that the government shutdown is over, Senator Young will be having conversations with colleagues, Hoosier stakeholders, and constituents about ways to lower health care costs.”

On Knox-Kelecy’s part, she said the subsidy concern will definitively impact how she votes in next year’s midterm elections.

“I know health care is a tough issue, but I would like to see some of the insurance companies held to account,” she said. “I would like somebody to investigate why is Ambetter doing this? I would like to see the Republicans and the Democrats come together and really try to, in earnest, tackle this issue of how we make health care affordable for everyday Americans. To come together and stop bickering and really take this seriously.”

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