As of January 1, 2026, enhanced federal subsidies that made Affordable Care Act (ACA) Marketplace plans more affordable for nearly 20 million Americans have expired, resulting in significantly higher premiums for many workers who rely on individual coverage.
While the Senate is set to vote on a bill that could extend the subsidies, Newsweek reports it is unlikely to pass. Since the subsidies expired, ACA premiums have jumped 114% on average.
For lower-income frontline workers already living paycheck to paycheck, losing affordable health coverage means making impossible choices. Analysts project up to 4.8 million people could drop ACA coverage in 2026, and many of them will be part-time or low-wage workers who no longer have a way to stay insured.
For employers with large hourly, part-time, or non-benefits-eligible workforces, this shift brings immediate pressure and a strategic opportunity to step in. Not only are uninsured employees more likely to delay care and avoid recommended prescriptions and treatments, but their financial stress can also contribute to depression, anxiety, and other mental health challenges that ultimately lead to absenteeism, lower productivity, and higher turnover.
In short, their skyrocketing ACA premiums also cost your business.
Who’s most at risk of losing coverage?
While the expiration of enhanced ACA subsidies affects millions, certain groups of employees are especially vulnerable to becoming uninsured:
- Part-time and hourly workers who don’t qualify for employer-sponsored benefits or Medicaid
- Workers just above the federal poverty line, where even a small increase in premiums makes coverage unaffordable
- Employees who are already living paycheck to paycheck, and unable to absorb added health insurance costs
According to KFF, lower-income earners are most impacted by the loss of subsidies – but higher earners aren’t immune. Consider these examples for two 45- year olds covered under silver premium plans, but earning drastically different incomes:
- The worker earning $25,000/year could see premiums jump 573%, from $160 to $1,077 annually
- The worker earning $65,000/year could pay $941 more, with premiums rising from $5,525 to $6,466 annually
Nearly 1 in 4 enrollees polled by KFF in December 2025 said they were “very likely” to go without insurance if ACA premiums were to rise.
What employers can do to help
You don’t have to provide group health coverage to every employee in order to provide meaningful support that makes a difference. Employees who have Brightside Financial Care as a benefit can access confidential, 1-on-1 support that makes it easier to navigate and understand all their health insurance options and find free and low-cost solutions that can help them alleviate other sources of financial strain, from everyday money problems to low credit scores that limit their borrowing opitons to student loans, so they don’t have to choose between their health and other financial obligations.
For example, Brightside Financial Assistants can help employees:
Understand and evaluate ACA, Medicaid, and alternative coverage options
Find ways to manage expenses and adapt to changing healthcare costs
Find free resources to offset the costs of basic needs, including housing, food, and utilities
Manage medical bills, reduce any type of debt, and find money
Access hardship funds and other employee benefits and resources your company offers
Employers can play a powerful role in reducing all employees’ financial stress with Brightside’s human-led support and free and/or affordable solutions for all financial challenges, including rising healthcare costs.
Click here to learn more about how offering Brightside Financial Care as a benefit can support your workforce and your bottom line.