Looming health insurance spikes for millions are at the heart of the government shutdown - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Health/Employee Benefits News
Newswires RSS Get our newsletter
Order Prints
October 1, 2025 Newswires
Share
Share
Post
Email

Looming health insurance spikes for millions are at the heart of the government shutdown

Associated Press

WASHINGTON (AP) — The U.S. government shut down Wednesday, with Democratic lawmakers insisting that any deal address their health care demands and Republicans saying those negotiations can happen after the government is funded.

At issue are tax credits that have made health insurance more affordable for millions of people since the COVID-19 pandemic. The subsidies, which go to low- and middle-income people who purchase health insurance through the Affordable Care Act, are slated to expire at the end of the year if Congress doesn't extend them. Their expiration would more than double what subsidized enrollees currently pay for premiums next year, according to an analysis by KFF, a nonprofit that researches health care issues.

Democrats have demanded that the subsidies, first put in place in 2021 and extended a year later, be extended again. They also want any government funding bill to reverse the Medicaid cuts in President Donald Trump'smega-bill passed this summer, which don't go into effect immediately but are already driving some states to cut Medicaid payments to health providers.

Some Republicans have expressed an openness to extending the tax credits, acknowledging many of their constituents will see steep hikes in insurance premiums. But the party's lawmakers in Congress argue negotiations over health care will take time, and a stopgap measure to get the government funded is a more urgent priority.

Health insurance rates will skyrocket for millions without congressional action

<hl2/>

A record 24 million people have signed up for insurance coverage through the ACA, in large part because billions of dollars in subsidies have made the plans more affordable for many people.

With the expanded subsidies in place, some lower-income enrollees can get health care with no premiums, and high earners pay no more than 8.5% of their income. Eligibility for middle-class earners is also expanded.

When the tax credits expire at the end of 2025, enrollees across the income spectrum will see costs spike. Annual out-of-pocket premiums are estimated to increase by 114% — an average of $1,016 — next year, according to the KFF analysis.

Millions expected to lose Medicaid coverage without changes to Trump's big bill

Republicans’ tax and spending bill passed this summer includes more than $1 trillion in cuts to Medicaid and food assistance over the next decade, largely by imposing new work requirements on those receiving aid and by shifting certain federal costs onto the states.

Medicaid's programs, which serve low-income Americans, enroll roughly 78 million adults and children. The nonpartisan Congressional Budget Office projects 10 million additional Americans will become uninsured in the next decade as a result of Republicans' law, between Medicaid and other federal health care programs.

Democrats want to roll back the Medicaid cuts in any government funding measure, while Republicans have argued that cuts are needed to reduce federal deficits and eliminate what they say is waste and fraud in the system.

Democrats say health care can’t wait

Democrats have insisted an extension of the health subsidies needs to be negotiated immediately as people are beginning to receive notices of premium increases for next year.

“In just a few days, notices will go out to tens of millions of Americans because of the Republican refusal to extend the Affordable Care Act tax credits,” House Democratic Leader Hakeem Jeffries said Tuesday on the steps of the U.S. Capitol.

He added the higher health care costs millions of Americans are facing are coming “in an environment where the cost of living is already too high.”

At the White House on Monday, congressional Democratic leaders shared their health care concerns with Trump. Senate Democratic Leader Chuck Schumer said after the meeting that Trump “was not aware” that so many Americans would see increases to their health care costs.

Republicans call for stopgap funding first, and a negotiation later

<hl2/>
<hl2/>

Republicans say they handed Democrats a noncontroversial stopgap funding measure and argue that Democrats are instead choosing to shut the government down.

“We didn’t ask Democrats to swallow any new Republican policies,” Senate Majority Leader John Thune said after Tuesday's failed vote. "We didn’t add partisan riders. We simply asked Democrats to extend the existing funding levels, to allow the Senate to continue the bipartisan appropriations work that we started. And the Senate Democrats said no.”

They've also falsely claimed that Democrats forced the government shutdown fight to give free health care to immigrants living in the U.S. illegally. These immigrants are not eligible for insurance bought on the ACA exchange or for Medicaid.

Republican leaders have offered to negotiate with Democrats on ACA health insurance subsidies — after they vote to keep the government open until Nov. 21.

“I will go to the Capitol right now to talk to Chuck Schumer and Senate Democrats about premium support for the Affordable Care Act, but only after they’ve reopened the government,” Vice President JD Vance said Wednesday on Fox News.

That might be easier said than done, with many Republicans in Congress still strongly opposed to extending the enhanced tax credits.

____

Swenson reported from New York.

Older

Mark Farrah Associates Assessed Second Quarter Health Insurance Membership Trends

Newer

Wyomingites brace for spiking health insurance prices as marketplace changes loom

Advisor News

  • How PEPs compare with traditional 401(k)s
  • Allianz studies why 42% of Americans retire sooner than expected
  • Why advisors should be talking about life settlements
  • Millennials are ready to bring their advisor to the family table
  • How healthcare inflation can eat up a client’s retirement income
More Advisor News

Annuity News

  • NAIC regulators continue pushing for annuity illustration updates
  • Wink: Flat first-quarter annuity sales fall just short of $100B
  • 26North Re Agrees to Acquire 100% of Independent Insurance Group
  • Matthew Michelini named Athene president, with an eye on annuity growth
  • Lincoln Financial Announces Executive Leadership Transitions
More Annuity News

Health/Employee Benefits News

  • Tom Campbell: We're paying too much for poor health care
  • Self-pay and dental care: Can paying cash without insurance help you save?
  • These Connecticut-based companies made this year's Fortune 500 list with revenue up to $275 billion
  • Surgery transforms epilepsy patient's life
  • Arizona AG accuses health insurance companies of illegal price fixing
More Health/Employee Benefits News

Life Insurance News

  • Prudential announces more layoffs as insurer continues to restructure
  • Pradip Patiath Joins Securian Financial Board of Directors
  • Over $107 million in life insurance benefits located for Tennesseans in 2025
  • Study Data from National Institutes of Health Provide New Insights into Law and the Biosciences (Taking actuarial fairness seriously: what is required for the ethical use of genetics in insurance?): Legal Issues – Law and the Biosciences
  • 26North Re Agrees to Acquire 100% of Independent Insurance Group
More Life Insurance News

- Presented By -

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Aim higher during Annuity Awareness Month
Raise the bar with our diverse portfolio of Ascend annuities, backed by superior financial strength

Maximize Your FIA Case Results
Learn a repeatable process to review, reposition, and present FIA opportunities with confidence.

You Could Be Losing Up to 20% of Your Commissions
GreenWave helps you find, fix, and prevent commission errors.

True Independence Means Having Choices
Cambridge offers flexibility, stability, proven tools—no private equity strings attached.

Life moves fast. Your BGA should, too.
Stay ahead with Modern Life's AI-powered tech and expert support.

Press Releases

  • RFP #T01625
  • Rockwood Programs Appoints Kerry Ladouceur as Vice President, Financial Lines
  • JP Insurance Group Launches Commercial Property & Casualty Division; Appoints Joe Webster as Managing Director
  • Sequent Planning Recognized on USA TODAY’s Best Financial Advisory Firms 2026 List
  • Highland Capital Brokerage Acquires Premier Financial, Inc.
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet