‘Healthcare catastrophe’: GOP lets ACA subsidies expire as millions face soaring costs

With millions of Americans facing health insurance premium hikes and Affordable Care Act tax credits expiring at midnight, critics, including congressional Democrats, called out Republicans on Capitol Hill for kicking off 2026 with a nationwide healthcare crisis.

“When the clock strikes midnight, the fallout of the GOP’s premium hikes will ripple throughout the nation,” Protect Our Care chair Leslie Dach said in a Wednesday statement. “This new year brings a healthcare catastrophe unlike anything this nation has ever seen. Hardworking Americans will be sent into crippling medical debt, emptying out their savings just to see a doctor. Others will be forced to live without the life-saving coverage they need. Untold tens of thousands will die from preventable causes.”

“And hundreds of hospitals, nursing homes, and maternity wards will shutter or be at risk of disappearing out of thin air,” Dach warned. “When the American people go to the ballot box in November, they won’t forget who’s responsible for all of this chaos and carnage. They won’t forget who’s responsible for their skimpier coverage, sky-high premiums, and vanishing hospitals.”

Republican lawmakers declined to extend ACA subsidies in their so-called One Big Beautiful Bill Act (OBBBA), which is also expected to slash an estimated $1 trillion in Medicaid spending over the next decade, leading to health clinic closures, while giving more tax breaks to the ultrawealthy. Even the longest federal government shutdown in history—which a handful of moderate Senate Democrats ultimately ended without any real concessions—couldn’t convince the GOP to extend the expiring tax credits.

Senate Minority Leader Chuck Schumer (D-NY), who has faced calls to step down over his handling of both shutdowns this year, stressed in a Wednesday statement that the healthcare crisis beginning Thursday “was entirely preventable—caused by Republican obstruction and total inaction.”

“Millions of Americans will lose their healthcare, and millions more will see their costs spike by thousands of dollars,” he continued. “Millions of hardworking families, small business owners and employees, older Americans, and farmers and ranchers will face impossible choices.”

Specifically, about 22 million people who receive subsidies face higher premiums next year, and experts warn nearly 5 million people could become uninsured if the tax credits aren’t extended. That’s on top of the at least 10 million people expected to lose Medicaid coverage over the next decade, thanks to the OBBBA that President Donald Trump signed into law this summer.

Noting that the expiring subsidies are set to leave millions of Americans without health insurance, House Minority Leader Hakeem Jeffries (D-NY) declared on social media Wednesday, “Republicans don’t give a damn.”

The Chicago Tribune on Wednesday shared the story of Eleanor Walsh, of St. John, Indiana. She and her husband, who are both self-employed, paid around $9,100 for health insurance this year. In 2026, it will increase to $23,400. To save money, they are going with another plan, which has a $10,130 deductible for each of them, she told the newspaper.

“We’re going through every expense we have,” said Walsh, whose family has over $10,000 in medical debt from her husband’s recent open-heart surgery. “It’s going to be a rough year.”

In Alta, Wyoming, Stacy Newton and her husband similarly run small businesses and buy health insurance through the ACA marketplace. She was diagnosed with chronic leukemia last year. The cheapest option to cover the couple and their teenage kids next year includes a $3,573 monthly premium, or nearly $43,000 for the year, with a $21,200 deductible.

“It’s terrifying... We’re not rich, we’re not poor. We’re a standard, middle-class family, and somehow now I can’t afford health insurance,” Newton told the Washington Post. “If my leukemia acts up, I’m up a creek... I just don’t have a solution yet.”

“I just officially canceled my ACA marketplace insurance for 2026,” she told the paper earlier this week. “How on Earth is this going to unfold for millions of people in America?”

While Americans are forced to make coverage decisions before open enrollment ends in mid-January, without any promise of the subsidies returning, Schumer signaled that Democrats are still fighting for a fix in Washington, DC.

“Senate Republicans had multiple chances to work with Democrats to stop premiums from skyrocketing—and every time, they blocked action,” he said. “While Republicans chose to do nothing and ignore the pain families will feel starting tomorrow, Senate Democrats are fighting to lower costs, protect coverage, and make life more affordable—not harder—for American families.”

Four Republicans in the House of Representatives have signed on to a discharge petition to force a January vote on Democratic legislation to extend the credits for three years. Roll Call reported Tuesday that “with the knowledge that a procedural vote on a similar bill was rejected in the Senate, a bipartisan group of senators is working on a compromise to extend the credits.”

However, as the outlet also pointed out, Senate Majority Leader John Thune (R-SD) has called Democrats’ three-year extension of the tax credits a “waste of money.”

Sen. Chris Van Hollen (D-Md.)—one of the lawmakers who has used the current healthcare debate to renew demands for Medicare for All—took aim at Thune on social media Monday.

Other lawmakers have kept up the battle for universal healthcare this week. Sen. Jeff Merkley (D-Ore.) said Tuesday that “everyone in America—no matter what their ZIP code is—should have access to the quality healthcare they need, when they need it. That’s why I’m fighting to put us on the path to Medicare for All.”

Sen. Bernie Sanders (I-Vt.)—who reintroduced the Medicare for All Act in April with Democratic Reps. Pramila Jayapal (Wash.) and Debbie Dingell (Mich.)—highlighted Sunday that “millions of Americans remain at jobs they hate for one reason: the health insurance they receive.”

“That’s absurd,” he said. “Universal healthcare will give Americans the freedom to choose the work they want without worrying about healthcare coverage. Another reason for Medicare for All.”

Absent any real progress on the ACA, let alone Medicare for All, in DC, “at least a dozen states are working to shield people from soaring health insurance costs following Congress’ failure to extend Obamacare subsidies for tens of millions of Americans,” Politico reported Monday.

Elected officials are taking action in states including California, Colorado, Connecticut, Maryland, and New Mexico, the last of which is the only one so far to cover all expiring subsidies, according to the outlet.

“We can carry the cost for a little bit, but at some point, we will need Congress to act,” said the speaker of New Mexico House of Representatives, Javier Martínez (D-11). “No state can withstand to plug in every single budget hole that the Trump administration leaves behind.”

This story was published in partnership with Common Dreams. Read the original here.