Government Shutdown and Health Insurance: Will Enhanced COVID Subsidies Stay?

As the federal government once again edges toward a possible shutdown, millions of Americans are left wondering what will happen to their health insurance costs in 2025. The issue at the center of the storm is the enhanced COVID-era subsidies that were added to the Affordable Care Act (ACA) Marketplace during the pandemic. These subsidies dramatically lowered monthly premiums for many families — but unless Congress acts, they are set to expire at the end of this year.

For families who have grown accustomed to lower premiums on Healthcare.gov, the expiration of these subsidies could mean a major spike in their monthly costs.

What Are the Enhanced COVID Subsidies?

Back in 2021, the federal government passed temporary relief measures to make ACA health insurance plans more affordable. Known as “enhanced subsidies,” they:

• Increased the size of premium tax credits.

• Expanded eligibility so more middle-income families qualified for assistance.

• Reduced out-of-pocket costs for many enrollees.

These subsidies helped millions of Americans afford health coverage during a time of economic uncertainty. For families who were just above the traditional income cutoff for ACA subsidies, the COVID enhancements provided thousands of dollars in savings each year.

Why the Shutdown Matters

If Congress fails to reach a budget deal and the government shuts down, one of the casualties could be the enhanced subsidies. Without legislation to extend them, the subsidies will automatically sunset at the end of this year.

That means when Americans go to shop during the next open enrollment period, they could face full freight Marketplace pricing for the first time in several years. For a family of four that does not qualify for regular subsidies, that could mean paying $1,500–$2,000+ per month for coverage.

Private Off-Exchange Health Plans: A Real Alternative

Here’s what many people don’t realize: Marketplace plans are not the only option.

In most states, there are private, off-exchange health insurance plans available that can be a lifeline for families facing the loss of enhanced subsidies. These plans are not listed on Healthcare.gov and typically require working with a licensed broker.

Key benefits include:

• Nationwide PPO networks — offering the freedom to see doctors and hospitals across the country.

• Underwriting for approval — while these plans generally require no major pre-existing conditions, those who qualify often get much lower rates.

• Lower premiums — off-exchange private plans are typically about 50% less expensive than a full-price ACA Marketplace plan. On the low end, savings can be even greater, cutting premiums in half for healthy families.

• Stable renewals — since premiums are based on your individual profile rather than a broad community risk pool, you’re less likely to see sharp annual increases due to someone else’s claims.

Who Should Consider These Plans?

Private, off-exchange health plans are a strong fit for:

• Self-employed individuals or husband-and-wife businesses.

• Small business owners with a handful of employees.

• Families who don’t qualify for ACA subsidies and are facing full marketplace premiums.

• Healthy individuals with no major pre-existing conditions who can pass underwriting.

The Bottom Line

The government shutdown debate isn’t just about politics — it could directly hit your wallet. If Congress doesn’t act, enhanced COVID subsidies will disappear, leaving millions with higher ACA Marketplace premiums.

But you are not without options. For many families, especially those who won’t qualify for subsidies, private off-exchange PPO plans provide a practical alternative. With costs often 50% lower than full-price Marketplace coverage, these plans can keep quality health care within reach even if Washington gridlock continues.

As open enrollment approaches, now is the time to compare your choices. Don’t wait until the last minute to find out whether subsidies are extended or not. Explore off-exchange options today and make sure your family is protected, regardless of what happens in Congress.