Largest Employer Healthcare Cost Increase in 15 Years & ACA Subsidy Expiration

Health care costs are soaring. Blame insurers, drug companies — and your employer NPR Article

Overview

Healthcare in the United States is already the most expensive in the developed world — and costs are rising faster than they have in 15 years. Millions of Americans are about to be squeezed from two directions:

1. ACA Subsidy Expiration (end of 2025): Premiums for Affordable Care Act marketplace plans will rise sharply if Congress allows the enhanced subsidies from the Inflation Reduction Act to expire.

2. Employer Coverage Increases (2025–2026): According to NPR and a Mercer survey, employer-provided health plans — covering 154 million Americans — will see their largest cost hike in 15 years. Employers are expected to pass these costs on to workers.

ACA Subsidy Expiration (Marketplace Plans)

• Background:Enhanced ACA subsidies were created under the American Rescue Plan Act (2021) and extended by the Inflation Reduction Act (2022) through 2025.These subsidies expanded eligibility above 400% of the federal poverty level and reduced premiums for millions.

• What happens in 2026:Unless Congress acts, subsidies will revert to their less generous levels.Millions of middle- and lower-income families will see premiums spike by hundreds of dollars a month. Many will lose coverage altogether, worsening the uninsured rate.

Employer Coverage Premium Hikes

• Scope: 154 million Americans get health insurance through their employers.

• Increase: Employers’ costs are projected to rise nearly 9% per employee in 2025 — the steepest increase in 15 years.

• Impact on Workers:Paycheck deductions for premiums expected to rise 6–7% on average. Out-of-pocket costs will also increase as 59% of employers plan “cost-cutting changes” like higher deductibles, copays, and prescription costs.

• Why Employer Costs Are Rising:More expensive new drugs and treatments.Increased demand for care post-pandemic.Market consolidation among hospitals, insurers, and providers reducing competition.Employers are shifting costs to employees to stay competitive.

Why This Matters Now

• A Double Squeeze: Workers will see higher paycheck deductions while ACA marketplace enrollees face the loss of subsidies. Both groups — representing the majority of Americans under 65 — will be hit at the same time.

• Economic Strain: This comes as families are already struggling with inflation and high costs for food, housing, and essentials.

• Equity Issues: Rising costs disproportionately affect working-class families, people of color, and rural communities with fewer choices.

• Systemic Failure: The U.S. system — dominated by powerful drug companies, insurers, and consolidated hospital systems — leaves workers and families with little bargaining power.

The Bottom Line

If Congress allows ACA subsidies to expire while employer costs continue to surge, Americans will face the largest erosion of affordable healthcare in over a decade. Families should not be forced to choose between healthcare and other necessities.

Call Script: Stop the Healthcare Cost Crisis

Who to Call: 

1. Senator Rick Scott   202-224-5274

2. Senator Ashely Moody   202-224-3041

3. Your U.S. House Representative   202-224-3121

Script:

Hello, my name is [Your Name], and I live in [City, ZIP].

I’m calling because healthcare costs are spiraling out of control. Senator Brian Schatz recently warned that ACA subsidies will expire at the end of 2025, causing millions of families to see their premiums rise by hundreds of dollars a month. At the same time, new data from Mercer shows that employer-provided coverage — which 154 million Americans rely on — is facing its largest cost increase in 15 years, with workers paying more in paycheck deductions, deductibles, and copays.

Families can’t afford this double squeeze. I urge [Senator/Represenative Name] to support legislation that extends ACA subsidies and also takes action to rein in employer healthcare costs, prescription drug prices. Commit to supporting an extension of ACA subsidies and advancing legislation that protects families from skyrocketing healthcare costs?