ACA subsidy cliff: Small-business owners brace to lose health coverage in 2026

Some self-employed workers and small-business owners say they are preparing to lose health insurance in 2026 as enhanced Affordable Care Act premium subsidies expire at the end of the year, driving up monthly costs for many families.

CNN profiles several business owners who rely on Obamacare plans because employer coverage is often out of reach for small operations. Eric and Lisa Frankenfeld of Point Pleasant, New Jersey, say their premium is expected to jump to about $1,928 a month, up from $340 this year, leading them to forgo coverage even though the uncertainty is frightening.

Health policy researchers say this isn’t a niche issue. A sizeable share of people buying individual coverage are tied to small businesses, and the enhanced subsidies helped fuel record enrollment. Without the added assistance, enrollees’ premium payments are projected to rise sharply next year, and people earning above 400% of the federal poverty level would no longer qualify for financial help.

The story also highlights other families making similar calculations. Some say they will try to set aside money each month and hope they avoid a major illness or accident. Others, especially those with medical needs, say they are exploring alternatives like expanding partnerships to access group coverage, even if it means cutting back elsewhere.

Congress is expected to take up the issue in January, but the outlook is uncertain, leaving many small-business owners facing a risky decision as the new year approaches.

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