Marketplace Morning Report Expiring tax credits will increase health insurance costs for millions
Sep 3, 2025
Tax credits under the Affordable Care Act are expiring, leading to significant increases in health insurance costs for millions. This financial strain will hit small business owners and self-employed individuals the hardest, raising fears of coverage loss. Additionally, retailers are pivoting to holiday sales, but a projected 5% decline in consumer spending adds pressure to their strategies. As the shopping season approaches, the outlook remains uncertain for both health coverage and retail.
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Small-Business Owner Faces Insurance Crisis
- Andrea Deutsch, a 57-year-old pet store owner and type 1 diabetic, expects to pay more than twice as much for insurance next year.
- She may close her 22-year store or take a different job if coverage becomes unaffordable.
Multiple Forces Driving Premium Hikes
- Insurers cite pricier care, higher drug costs, tariffs, and the potential end of tax credits when they raise premiums.
- Those combined pressures will force people like Andrea Deutsch to find hundreds more dollars each month for coverage.
Expiration Will Hit Millions' Premiums
- The 2021 expansion of ACA tax credits helped 90% of marketplace buyers and extended subsidies to people earning over $62,000.
- Letting those credits expire would raise costs for nearly 22 million people and could push about 4 million to drop marketplace insurance over a decade.