How the ACA is still relevant in 2025

Premiums Are Rising—But Subsidies Still Matter

Marketplace premiums are projected to increase by a median of 7% this year. That’s largely due to rising hospital costs, specialty drug usage, and inflation. However, most individuals won’t feel the full impact thanks to income-based subsidies that adjust monthly premiums based on household income and plan costs.

The bigger concern is what happens next. Enhanced subsidies—expanded under recent legislation—are set to expire at the end of 2025. Millions of Americans could face significant premium hikes in 2026. Some estimates suggest increases of up to 75% for certain income brackets. This could lead to reduced coverage, higher out-of-pocket costs, or even market exits.

Coverage Gains Are Real—but Vulnerable

The ACA helped drive the uninsured rate to a historic low of 7.9% in 2023, with over 21 million people enrolled in marketplace plans. These gains were made possible by expanded subsidies and streamlined enrollment processes.

But they’re not guaranteed. If enhanced subsidies lapse, analysts project that more than 4 million Americans could lose coverage over the next decade. Medicaid redeterminations following the end of the COVID-19 public health emergency have already led to disruptions. The ACA’s role as a safety net—especially for those transitioning out of Medicaid—is being tested.

What This Means for Our Clients

At Precise Insurance, we work with individuals and families who rely on ACA plans for affordable, reliable coverage. Here’s what we’re seeing:

• Affordability remains strong for most clients who qualify for subsidies. Even with rising base premiums, out-of-pocket costs are stable for many.

• Plan selection matters more than ever. Narrow networks and high deductibles are common in lower-tier plans. We help clients weigh trade-offs between cost and access.

• Enrollment support is critical. For those with changing income or household structures, navigating eligibility and plan options can be complex. Our licensed agents provide personalized guidance to simplify the process.

Looking Ahead

The ACA’s future depends on legislative decisions in the coming year. If enhanced subsidies are extended, the individual market could remain stable and accessible. If not, affordability could erode for many, especially those that can fall into the higher income brackets.

At Precise Insurance, we’re committed to helping our clients stay informed and prepared. Whether you’re renewing your coverage, exploring new options, or navigating a life change, our team is here to guide you through the complexities of the health insurance market.

Schedule a consultation with a Precise Insurance agent today to review your options before open enrollment begins.

As open enrollment approaches, many Americans are asking how the Affordable Care Act (ACA) continues to affect their coverage options. At Precise Insurance, we’re tracking the latest trends to help our clients make informed decisions.

Here’s what to expect in 2025 and what it could mean for your health plan.