Health Insurance Premiums Face potential Surge as Government Shutdown Looms
NASHVILLE, Tenn. – Thousands of Tennesseans could see significant increases in their health insurance premiums next year if Congress fails too act swiftly to extend enhanced Affordable Care Act (ACA) tax credits, experts warn. With open enrollment for 2026 coverage beginning in less than a month,the uncertainty surrounding a potential federal government shutdown and stalled negotiations over funding is creating real fear among those relying on the financial assistance.
The enhanced tax credits,initially expanded under the American Rescue Plan in 2021 and extended through 2025,have made health insurance more affordable for millions of Americans,including a considerable number of Tennesseans. Without congressional action, these credits are set to expire, possibly leading to substantial premium increases for individuals and families who currently qualify. According to estimates, families could face premium hikes ranging from hundreds to thousands of dollars annually.
“We cannot afford for Congress to wait any longer, because premiums for next year are being set now,” stated A.K. Garr, a Nashvillian and educator, in a recent opinion piece. “To keep our coverage, we must sign up during an enrollment period that begins in less than a month. If Congress waits until November or December to extend the improved tax credits, manny families will have already abandoned their coverage due to the real fear of skyrocketing premiums.”
The current impasse stems from a broader struggle in Congress to agree on a federal budget. On October 1, 2025, the federal government entered a shutdown after President Donald Trump and congressional leaders failed to reach a funding compromise. The shutdown adds further uncertainty to the timeline for extending the ACA tax credits.
The ACA marketplace offers health insurance options to individuals and families who do not receive coverage through an employer or government programs like Medicare or Medicaid. The tax credits help lower monthly premiums based on income, making coverage more accessible. Tennessee currently has over[InsertcurrentTennesseeACAenrollmentnumber-[InsertcurrentTennesseeACAenrollmentnumber-[InsertcurrentTennesseeACAenrollmentnumber-[InsertcurrentTennesseeACAenrollmentnumber-research needed]individuals enrolled in ACA plans, many of whom rely on these subsidies.
Beyond the financial impact, advocates emphasize the importance of continuous health coverage. “Congress’ indifference to our situation is especially galling,” Garr wrote. ”As taxpayers, we pay for the health insurance that members of Congress and their families enjoy.The rest of us also need health coverage to protect us from medical bankruptcy and to afford essential health care services.”
The open enrollment period for 2026 ACA plans is scheduled to begin on November 1, 2025, and run through January 15, 2026. Consumers are encouraged to visit HealthCare.gov to explore their options and determine eligibility for financial assistance. The outcome of the congressional negotiations will directly impact the affordability of those options.
