For several weeks all eyes were on Congress as America waited the vote to extend the ACA Tax Subsidy extensions that would greatly impact those on Obamacare and those who purchased their insurance through the marketplace.  On Wednesday America learned that Congress voted party lines.  The Democrats voted against the Republican’s version and the Republicans voted against the Democrats version of the tax incentive.

That stalemate means that on December 31, 2025 those tax subsidies will end and everyone’s insurance premiums will rise; some as much as 300%.

The ACA Tax Subsidies were the framework for the 2008 legislation that created Obamacare, essentially creating affordable insurance premiums for a single payer system, while penalizing anyone that did not sign up for health insurance.  Many economists were skeptical that the law would work with the current funding structure, but Congress failed to structure the bill better for long term viability.

In 2016 when President Trump took office, the law was challenged by his administration.  The basis for the challenge was nobody in a free country should have to be forced to buy something they don’t want.  If Trump was successful in reversing this key component, it would hurt Obamacare forever.  By 2017 he was successful as the Supreme Court overturned the mandate saying it was essentially a tax penalty on someone that didn’t buy health insurance.  After the decision American’s that didn’t have insurance were not penalized on their federal taxes.  The mandate was still in effect for businesses with over 50 employees.  The penalty was essentially paying for the tax subsidy, the life blood of Obamacare.

Now that the subsidy has not been extended, the final nail in the coffin for Obamacare was placed.

This means those that were paying practically nothing or a low fee for healthcare will no longer be able to receive that benefit.  Millions of Americans will now be unable to afford their health insurance.  This was the concern for almost 16 years.  The aftermath is another crisis almost equal to the mandate to buy insurance in the first place.

In 2026 Congress will convene to relook at possible solutions.  Until then those that wish to buy single payer health insurance could pay as much as 2000.00 or more per policy per month.

It’s time congress looks to make healthcare affordable with a real solution, one that makes sense and doesn’t use smoke and mirrors to make it happen.