Expiration of Enhanced Subsidies: The enhanced premium tax credits (PTCs) that have been keeping ACA Marketplace coverage affordable are set to expire at the end of 2025. Without these enhancements, premiums could increase significantly, affecting affordability for many enrollees.
Rising Healthcare Costs: The overall increase in healthcare costs, including prescription drug prices and hospital care expenses, is a major driver of premium hikes. Inflation also plays a role in pushing up these costs.