by Mitti Hicks
January 2, 2026
Health care premium payments are expected to increase by an average of 114% for the tens of millions of people who take advantage of health insurance tax credits in the marketplace.
As we enter 2026, millions of Americans face a rise in health care premiums after Congress failed to extend Affordable Care Act subsidies. Now lawmakers on both sides of the aisle are working on a bipartisan plan that they say needs President Donald Trump's blessing.
Vermont Democratic Senator Peter Welch told NPR that he and other senators are working on bipartisan legislation that could represent a possible compromise on health care.
“We could extend the loans for a few years, we could reform them,” Welch said. “You could put an income cap, you could have a copay, you could impose penalties on insurers who commit fraud. You could actually introduce some cost-saving reductions that have bipartisan support.”
But for a health care plan to work, Trump has to intervene, says Welch.
“It would require President Trump to play a major role in this because he has great influence over the Republican majority in the House and even the Senate,” Welch added.
As subsidies end, Americans will pay an average of 114% more for healthcare
As BLACK COMPANY As previously reported, health care premium payments are expected to increase by an average of 114% for the tens of millions of people who take advantage of health insurance tax credits in the marketplace. The increase comes after temporary adult tax credits that Congress extended as part of the American Rescue Plan Act (ARPA) expired on December 31.
Rising health care costs have been the central issue for Democrats during the longest government shutdown in U.S. history. Republican lawmakers promised to work with Democrats on a plan to keep health insurance affordable for Americans, but no agreement was reached before Congress went into recess.
As NPR points out, Trump remained cautious in the bitter subsidy battle. With the increase now a reality for millions of Americans, Senator Welch believes Trump will have no choice but to step in and help lawmakers find a solution.
“A Vermont farmer’s premium will increase from $900 per month to $3,200 per month,” Welch said. “So you're really going to experience sticker shock. It's going to have a secondary impact because hospitals, particularly in rural areas, are going to lose revenue.”
The Senator is scheduled to return to Washington, D.C. from recess on January 5th, and the House of Representatives is scheduled to return on January 6th.
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