House GOP Advances Health Plan as Obamacare Costs Rise

House Republicans have advanced a new health care package aimed at lowering certain costs, but the move leaves unresolved questions for millions of Americans who rely on Obamacare. 

As Congress heads toward 2026, the debate over affordability under the Affordable Care Act is intensifying.

Speaker Mike Johnson pushed the House to approve a narrow Republican health care package this week, sending the bill to the Senate on a 216–211 vote, according to CNN. GOP leaders described the measure as an initial step in a broader effort to address health care costs next year.

As reported by CNN, the legislation would allow small businesses and self-employed workers to join association health plans to seek lower premiums. It also restores federal funding for cost-sharing subsidies that reduce deductibles and out-of-pocket costs for lower-income Obamacare enrollees. In addition, the bill requires pharmacy benefit managers to disclose drug pricing and rebate information to employers.

The package does not extend enhanced Obamacare premium tax credits that were enacted during the Covid-19 pandemic, a decision that has drawn criticism from some Republican centrists and Democrats.

What to Expect for Obamacare in 2026

If the enhanced subsidies expire at the end of 2025, Obamacare enrollees will face significant premium increases in 2026. According to KFF, average annual premium payments would rise by 114%, or about $1,000. The Congressional Budget Office estimates roughly 2 million additional people could become uninsured if the subsidies lapse.

USA TODAY reports that the Senate has already rejected a Democratic proposal to extend the credits, leaving consumers to absorb the higher costs or switch plans. 

“People have to make these big financial and health decisions, and they are making them right now,” said Sabrina Corlette of Georgetown University’s Center on Health Insurance Reforms.

The 2025 KFF Marketplace Enrollees Survey shows about one-third of ACA enrollees would likely shop for new coverage if premiums double, while one in four say they may drop insurance altogether. 

“Many people are likely actively shopping and switching (plans) this year,” said Cynthia Cox, a KFF vice president.

With no extension in place, consumers enrolling for 2026 should expect higher premiums, tougher coverage choices, and continued political uncertainty surrounding the future of Obamacare affordability.