Younger adults and gig workers could face some of the steepest increases in health insurance costs when federal premium subsidies for Affordable Care Act plans expire at the end of 2025, according to health policy analysts.
Natasha Murphy, director of health policy at the Center for American Progress, said the situation risks pricing younger Americans out of the insurance market entirely.
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"These individuals, who are healthier and therefore spend less, on average, every year, means that over time, health care premiums and overall health care costs are going to rise for the remainder of people who are still in that health risk pool," she said.
Murphy gave the example of a 27-year-old in Miami earning about $25,000 a year. With the current enhanced subsidies, premiums might be about $256. Without them, the same coverage could exceed $5,000 in 2026.
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"As you can imagine, that early career professional, someone who does not have a lot of resources, unfortunately, is not going to be able to absorb that type of premium increase," Murphy said.
She added that extending the enhanced tax credits, which is the reason for the current government shutdown, and expanding Medicaid in states that have not yet done so would help stabilize costs.
In the meantime, she urged gig workers to “actively shop” during open enrollment to find the most affordable option for the year ahead.