Pandemic Subsidy Rollback Raises Premiums

MGN

CHATTANOOGA, Tenn. (WDEF) – Tennessee residents enrolling in health insurance through the federal marketplace in 2026 are likely to face higher premiums as temporary pandemic-era tax credits expire. 

These enhanced subsidies helped lower monthly costs for many families during the COVID-19 period, but they are scheduled to end unless Congress renews them.

Without the extra credits, households will see the full cost of their plans before standard tax credits are applied. 

While the usual federal subsidies remain available for qualifying residents, the removal of the enhanced financial assistance will result in higher out-of-pocket payments for many Tennesseans.

This change is a major factor in the year-over-year increase in marketplace premiums, particularly affecting individuals who relied most heavily on the additional support. 

Updated plan pricing reflecting the expiration of these subsidies will be in effect for the 2026 coverage year.

Residents shopping for coverage are encouraged to review plan costs carefully and consider all available options before enrollment begins.