Why Obamacare funding is a sticking point in the fight to avoid a government shutdown

WASHINGTON — A pot of funding for insurance coverage under the Affordable Care Act expires at the end of this year, and Republicans in Congress are rejecting Democrats’ demands to extend it this month in a government funding bill

WASHINGTON — A pot of funding for insurance coverage under the Affordable Care Act expires at the end of this year, and Republicans in Congress are rejecting Democrats’ demands to extend it this month in a government funding bill.

Expiration of the funds would lead to sharp premium hikes for people all over the country. While they officially expire after the last day of 2025, there is some urgency to act soon: Insurers are filing their rates over the next few weeks, and open enrollment begins Nov. 1. Failure to act by then could cause many people to drop their coverage for 2026.

“Technically, the enhanced ACA tax credits don’t expire until December 31. But, the longer Congress waits to extend them, the more damage and chaos there will be in the meantime,” Larry Levitt, a health care policy expert at KFF, a nonpartisan research group, said in an email.

“If open enrollment starts November 1 without the tax credits extended, ACA enrollees are going to log in to their accounts and see average out-of-pocket premium increases averaging over 75%. Their eyes are going to pop out of their heads, and many will likely decide not to enroll,” he continued.

Republican leaders say Congress can debate the Obamacare funding in November or December, although they haven’t committed to allow votes to extend the money.