End of ACA Subsidies Raises Healthcare Costs in Alaska by sdmn
Affordable Care Act subsidies set to expire are now at the center of the shutdown, threatening coverage and driving up costs for thousands in Alaska.
While the government shutdown continues, a dispute over health care subsidies has emerged as one of the main reasons Congress remains at an impasse. The enhanced subsidies for Affordable Care Act plans, introduced in 2021 to make insurance more affordable for millions of Americans, are set to expire at the end of the year unless lawmakers reach a deal.
These subsidies limit how much of a household’s income can go toward insurance premiums and have helped more than 22 million people afford coverage. Without renewal, average annual premium payments would increase from about $888 to $1,904, according to the nonpartisan health policy group KFF. The Congressional Budget Office estimates that approximately four million people could lose their insurance next year due to the higher costs.
Despite widespread public support for keeping the subsidies in place, they have become a central point of contention in budget negotiations. Democrats argue that the extension must be approved before open enrollment begins in November, warning that millions of Americans could face sudden premium hikes. Republicans say health care discussions should take place only after the government is funded.
A recent KFF poll found that 59 percent of Republicans and 57 percent of Trump supporters favor maintaining the enhanced subsidies, highlighting a rare bipartisan agreement among voters, even as congressional leaders remain divided on how and when to act.
In Alaska, the stakes are particularly high. According to reporting by the Alaska Beacon, the state has the most expensive health care in the nation, and more than 25,000 residents rely on the federal marketplace for coverage. If the subsidies expire, many Alaskans could be priced out of their plans. In Juneau, the average monthly premium would rise from $124 to $1,008, according to local estimates — an increase of more than 700 percent. The potential loss of coverage could strain Alaska’s hospitals, which already operate under significant financial pressure. Without subsidies, hospitals would face higher levels of uncompensated care, while families would have to choose between paying for health insurance or other essential needs. Lawmakers from both parties in Alaska have urged Congress to extend the subsidies, but no agreement has been reached. With open enrollment for 2026 plans approaching, many Alaskans remain uncertain about whether they will be able to keep their health insurance when the new year begins.
