Millions of Small-Business Owners to Lose ACA Coverage as Key Subsidies Expire
New Jersey / Nationwide – Millions of Americans who rely on the Affordable Care Act (ACA) could face losing their health insurance in 2026 after enhanced premium subsidies lapse at the end of the year.
Among those affected are Eric and Lisa Frankenfeld, a chiropractic couple from Point Pleasant, New Jersey. They will no longer be able to afford their ACA plan after the monthly premium jumps from $340 to $1,928. “We are health care providers who cannot afford benefits. Oh, the irony,” Lisa Frankenfeld told CNN. “Purchasing a plan doesn’t make financial sense. We’re just going to cross our fingers and hope for the best.”
The Frankenfelds are part of a larger group of ACA enrollees facing difficult decisions during this open enrollment season, which ends on January 15 in most states. Over 90% of ACA policyholders, approximately 22 million people, received enhanced subsidies this year, which led to record sign-ups.
Many affected enrollees are self-employed or work for small businesses, who often find employer-provided policies unaffordable. While ACA plans have required some out-of-pocket spending, they still offer a financial safety net for major illnesses or accidents.
Without the enhanced subsidies, average premium payments are expected to rise 114% in 2026. Individuals earning more than 400% of the federal poverty level — about $62,600 for a single person and $84,600 for a couple — will no longer qualify for federal assistance.
Kathy and Jeffrey Many, small business owners from Brandon, Vermont, are another example. Their ACA premium is set to increase to nearly $2,670 per month, forcing them to drop coverage. “Being uninsured next year will be very nerve-wracking,” said Kathy Many, 61, explaining that she and her husband will save money monthly and hope it covers health expenses until they become eligible for Medicare.
Some lower-income enrollees, like Jeff, a freelance musician from New York City, are also being priced out. After seeing ACA premiums rise to $275 per month, he decided he could not afford coverage and will become uninsured.
Congress is considering options to extend the enhanced subsidies. The House of Representatives is scheduled to vote in January on a Democratic proposal to extend the assistance for three years. However, the measure faces a challenging path in the Senate, which recently rejected a similar bill.
The lapse in ACA subsidies has sparked concern for millions of Americans, particularly small-business owners and self-employed individuals, who now face the difficult choice of going uninsured or paying premiums that could exceed their monthly income.
