Final day to select ACA health plans arrives in most states, with no
subsidy deal yet
[January 16, 2026]
By ALI SWENSON
NEW YORK (AP) — Thursday was the final day to select an Affordable Care
Act health insurance plan across much of the country, as the expiration
of federal subsidies drives up health costs and lawmakers remain locked
in a debate over how to address the issue.
That's when the open enrollment window ends in most states for plans
that start in February. About 10 states that run their own marketplaces
have later deadlines, or have extended them to the end of the month to
give their residents more time.
The date is a crucial one for millions of small business owners, gig
workers, farmers, ranchers and others who don't get their health
insurance from a job and therefore rely on marketplace plans. A record
24 million Americans purchased Affordable Care Act health plans last
year.
But this year, their decisions over health coverage have been more
difficult than usual as clarity over how much it will cost is hard to
come by. And so far, enrollment is lagging behind last year's numbers —
with about 22.8 million Americans having signed up so far, according to
federal data.
Last year, for months, it was unclear whether Congress would allow for
the end-of-year expiration of COVID-era expanded subsidies that had
offset costs for more than 90% of enrollees. Democrats forced a
record-long government shutdown over the issue, but still couldn't get a
deal done. So the subsidies expired Jan. 1, leaving the average
subsidized enrollee with more than double the monthly premium costs for
2026, according to an analysis from the health care nonprofit KFF.
Still, the question of whether Congress would resurrect the tax credits
loomed over Washington. Several enrollees told The Associated Press they
have either delayed signing up for coverage or signed up with a plan to
cancel as they anxiously watch what's happening on Capitol Hill.
Last week, the House passed a three-year extension of the subsidies
after 17 Republicans joined with Democrats against the wishes of
Republican leaders. But the Senate rejected a similar bill last year.
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Pages from the U.S. Affordable Care Act health insurance website
healthcare.gov are seen on a computer screen in New York, Aug. 19,
2025. (AP Photo/Patrick Sison, File)
 Sen. Bernie Moreno, R-Ohio, has been
leading a bipartisan group of 12 senators trying to devise a
compromise and said this week that he expects to have a proposal by
the end of the month. The contours of the senators’ bipartisan plan
involves a two-year deal that would extend the enhanced subsidies
while adding new limits on who can receive them. The proposal would
also create the option, in the second year, of a new health savings
account that President Donald Trump and Republicans prefer.
Under the deal being discussed, the ACA open enrollment period would
be extended to March 1 of this year to allow people more time to
figure out their coverage plans after the disruption.
Still, Republicans and Democrats say they have not completed the
plan, and the two sides have yet to agree if there should be new
limits on whether states can use separate funds for abortion
coverage.
President Donald Trump on Thursday announced outlines of a plan he
wants Congress to consider that would. It would, among other things,
redirect ACA subsidies into health savings accounts that go directly
to consumers. Democrats have largely rebuffed this idea as
inadequate for offsetting health costs for most people.
___
Associated Press writers Mary Clare Jalonick and Lisa Mascaro
contributed from Washington.
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