Health Insurance Enrollment Declines Through ACA Marketplace
Over a million individuals have opted out of health insurance available through the Affordable Care Act Marketplace, as per newly released federal data.
This decline follows the expiration of enhanced tax credits that had previously helped offset insurance costs, which ended on December 31st.
The Congressional Budget Office forecasts that this trend could continue, with more than two million people expected to leave the Affordable Care Act system in the coming year largely due to increased expenses.
In 2025, around 24.1 million Americans were enrolled in the Obamacare marketplace, but currently, the number stands at about 22.9 million, according to the Centers for Medicare and Medicaid Services. This results in a decrease of approximately 1.2 million individuals, and since the data remains preliminary, it’s possible that even more could lose their coverage in the months ahead.
A report from Georgetown University’s Center on Health Care Reform points out that the open enrollment data so far only reflects people who have selected plans. Yet, enrollment is still underway and coverage won’t kick in until the first month’s premium is paid.
Information regarding finalized registrations won’t be available for a while, but preliminary signs suggest a shrinking variety of plan options, which may be significant.
The now-expired subsidies were initially implemented in 2021 as a temporary measure to aid Americans during the pandemic. The Democratic Party extended these benefits, prolonging their expiration to early 2026.
These subsidy expansions enabled higher-income individuals to qualify for the marketplace and broadened coverage for many who were already eligible.
Currently, of the 22.9 million individuals enrolled, roughly 19.6 million are returning participants and about 3.4 million are new to the platform.
Interestingly, enrollment numbers have not declined uniformly across the country. New Mexico, for instance, saw an impressive 19.5% increase in enrollment, while states like Texas, Maryland, and Washington, D.C., also reported growth.
On the other hand, several states are experiencing significant drops in enrollment. For example, North Carolina had the sharpest decline at 21.1%, with Ohio and West Virginia following suit. In Alabama, around 22,000 fewer people are enrolled compared to the previous year, with 455,776 residents utilizing the Marketplace for health coverage.
Enrollment through the federal site, HealthCare.gov, concluded on January 15, 2026, but some states, like California, Connecticut, New York, and Pennsylvania, still have open enrollment periods ongoing.
