TN Health Care Premiums Set to Increase by 113% as Tax Credits Expire

Tennessee families are among millions of Americans bracing for steep health care premium hikes beginning in 2026, as key federal tax credits under the Affordable Care Act (ACA) are set to expire at the end of 2025. Notices warning of these increases are already arriving in mailboxes ahead of the November 1st open enrollment period.

The expiring subsidies have helped more than 20 million Americans afford coverage through the ACA Marketplace. Without congressional action to renew the credits, premiums could soar by as much as 600% nationwide. In Tennessee, a family of four earning $80,000 could see monthly premiums jump from $263 to $560, while a single adult making $50,000 could see costs rise from $217 to $415.

Economists warn the impact could be severe. “These hikes will push more households into debt, reduce disposable income, and widen the economic gap,” said Lindsay Owens, Executive Director of the Groundwork Collaborative. Other experts—including former Treasury and White House officials—say the ripple effects could strain both family budgets and the broader economy.

Even Tennesseans not receiving tax credits are expected to feel the pinch. Insurers have signaled plans to raise gross premiums for ACA Marketplace plans by an average of 20%, marking the largest increase in six years. Employer-based insurance plans, covering more than 160 million Americans, are also projected to see their biggest premium jump in 15 years.

The Economic Speakers Bureau and Groundwork Collaborative are urging Congress to act before year’s end to prevent these price hikes from taking effect.

Stay informed and stay connected to 931GO.com and ESPN Radio Winchester.