New Yorkers are bracing for a potential increase in health insurance premiums for 2026, as key federal subsidies under the Affordable Care Act (ACA) are set to expire. This looming financial burden is now closely tied to a tense political showdown in Washington over the federal budget—a dispute that threatens a government shutdown and leaves thousands uncertain about their future healthcare costs. Open enrollment for health plans begins November 1, with residents able to review their options starting Wednesday.
Most residents who purchase coverage through the state marketplace benefit significantly from federal subsidies, which lower monthly premiums. These enhanced subsidies—expanded during the COVID-19 pandemic—are set to become less generous by year’s end. Unless Democrats in Congress succeed in renewing these critical improvements, many households will face substantially higher out-of-pocket costs.
The impact could be significant. About 140,000 New Yorkers who currently rely on this assistance may face an average increase of $114 per month—roughly $1,400 annually—according to a state Department of Health analysis. Policy experts warn such increases could push some to drop coverage altogether, swelling the ranks of the uninsured.
Health Insurance Subsidies at Risk for New Yorkers in 2026
The subsidies have become a central point of contention between Democrats, prominent Republicans in Congress, and President Donald Trump during budget negotiations. New York Governor Kathy Hochul, along with 17 other governors, has urged extending the tax credits, stressing their importance to working families.
For many, the subsidies are a lifeline. Brooklyn-based freelance writer and editor Suzy Armitage, 43, explained that her income-based federal assistance nearly cuts her monthly bronze plan premium in half—from $700 to $345. Though in good health, she insists she cannot risk going without insurance, calling it a vital safety net.
While many employed adults receive health insurance through their employers, a large share of freelancers, small-business employees, and independent workers rely on ACA coverage. This group spans chiropractors, musicians, real estate agents, dentists, farmers, and beauty workers—illustrating the program’s broad reach.
Even the expectation of subsidy cuts has already influenced 2026 premiums. Insurers submitted proposed rates to state regulators in May, with final approvals issued in August. Many cited the anticipated end of enhanced tax credits as a reason for higher rates. Ultimately, the state approved a 7.1% average increase in the individual market—lower than the 13.5% insurers initially requested.
According to the Congressional Budget Office, making the enhanced subsidies permanent would add nearly $350 billion to the federal deficit over the next decade but would also cover an additional 3.8 million people nationwide. The decision highlights the tradeoff between fiscal impact and expanding healthcare access.
Subsidy Showdown in Washington
New York’s Democratic leaders—Senator Chuck Schumer and Representative Hakeem Jeffries—are pressing President Trump and Republicans to renew the subsidies and reverse recent healthcare cuts. They have tied their support for the crucial federal spending bill, needed to avoid a shutdown, to these healthcare demands.
Republicans, meanwhile, are pushing for a “clean extension” of current funding levels without added healthcare provisions. Representative Nicole Malliotakis, a New York Republican, criticized what she called “radical left extremists stirring chaos” and emphasized the need to keep government funded.
Reports suggest Trump administration officials signaled willingness to revisit Democrats’ healthcare demands after passing the spending bill. However, both Schumer and Jeffries rejected the idea, with Jeffries saying it was “unreasonable to delay and expect us to accept a promise that may never materialize.” The high-stakes negotiations remain unresolved, leaving many New Yorkers anxious about the future of their health insurance.