Premiums Surge by Up to $4,000 per Month as U.S. ObamaCare Subsidies End

Unable to Afford Soaring Premiums, Many Cancel Coverage
Rising Number of Uninsured Raises Concerns Over Gaps in Healthcare Access

With the expiration of subsidies for health insurance premiums under the U.S. Affordable Care Act (ACA), also known as "ObamaCare," a growing number of Americans are struggling with skyrocketing insurance costs.

On January 2 (local time), The New York Times (NYT) reported that, with the end of ObamaCare subsidies at the end of last year, many policyholders are facing the difficult situation of their health insurance premiums more than doubling.

ObamaCare advertisement by a former American insurance company. Photo by Reuters Yonhap News Agency

There have been numerous cases where monthly premiums have surged from several hundred dollars to several thousand dollars.

For example, in California, Renee Rubin Ross's health insurance premium for a family of four is expected to rise from $1,300 per month last year to $4,000 per month this year, an increase of about $2,700 (approximately 3.9 million won). Ross said, "I have no idea how to process this," adding, "This is absolutely unaffordable."

Due to this dramatic increase in health insurance premiums, some existing ObamaCare subscribers have decided to go without health insurance altogether, while others are switching to lower-premium plans that offer limited coverage and require thousands of dollars in out-of-pocket expenses when receiving care.

In Oregon, Mark and Kate Dwyer are facing a situation where their insurance premiums have soared to about a quarter of their annual household income. Mark, 60, lost access to employer-provided health insurance after retiring from his job as a plumber, and his wife Kate, 58, runs a small nonprofit that does not offer health insurance.

The cheapest plan available to the couple this year costs $2,000 per month (approximately 2.8 million won), so they ultimately decided to keep only the husband's insurance and cancel the wife's coverage. They determined it was better to maintain Mark's insurance due to his family history of heart disease.

In Pennsylvania, as of the end of December last year, about 60,000 out of 500,000 people who had signed up for ObamaCare for 2025 had canceled their insurance. Pennsylvania has a relatively high number of early retirees, and according to the NYT, some of them are taking a sort of "gamble" by remaining uninsured until they become eligible for federal Medicare (health insurance for seniors) at age 65, hoping to stay healthy until then.

There are concerns that the increase in the uninsured population, as more people cancel their insurance due to soaring premiums, could widen gaps in healthcare access. The U.S. Congressional Budget Office estimated that, without subsidies, about 4 million people could lose their insurance. Many of these individuals are believed to be self-employed or work for small businesses that do not provide health insurance.

Since the expansion of ObamaCare subsidies in 2021, more people have become eligible for support and out-of-pocket costs have decreased, resulting in a record 24 million people enrolled in ObamaCare last year. The Democratic Party sought to extend the subsidies for three more years, but faced opposition from President Trump and the Republican Party, who labeled ObamaCare a failed policy. As a result, the subsidies ended at the close of last year.