Obamacare Enrollment Drops After Subsidy Expiration

Got story updates? Submit your updates here. ›

The expiration of Obamacare subsidies at the end of 2025 has led to a significant decline in health insurance enrollment through the Affordable Care Act (ACA) marketplace, with over 1 million people dropping coverage according to preliminary federal data. The number of Americans with Obamacare plans has decreased from 24.1 million in 2025 to 22.9 million in 2026, a drop of approximately 1.2 million. However, the full impact may be even greater, as paid enrollment figures are still being finalized.

Why it matters

The loss of Obamacare subsidies, which expanded eligibility and covered more costs for enrollees, has made health insurance less affordable for many Americans. This raises concerns about access to healthcare, especially for lower-income individuals and families who relied on the subsidies to obtain coverage.

The details

The Congressional Budget Office had previously estimated that over 2 million people would lose their Obamacare coverage due to higher costs after the subsidies expired. Among the 22.9 million current marketplace enrollees, 19.6 million are returning customers, while 3.4 million are new. Enrollment trends vary significantly by state, with New Mexico seeing a 19.5% increase and North Carolina experiencing a 21.1% decline.

• The Obamacare subsidies expired on December 31, 2025.
• The open enrollment period for 2026 coverage closed on January 15, 2026 on the federal HealthCare.gov platform, though some state-based marketplaces are still accepting applications.

What’s next

Policymakers and healthcare advocates will likely continue to monitor enrollment data and assess the long-term impacts of the subsidy expiration, as well as explore potential solutions to make coverage more accessible and affordable.