November 17th, 2025 – The recent federal shutdown that finally ended drew lots of attention because of the impact on health care subsidies that help millions of Americans—including many Coloradans—afford coverage through the Affordable Care Act (ACA) marketplaces.
Here’s our non-political take on what happened, what’s being discussed, and what it could mean for Colorado individuals and families who have been eligible for federal premium tax credits through the Connect for Health Colorado marketplace.
Government Reopens and Avoids Automatic Medicare Cuts
With the passage of a short-term funding bill, the federal government reopened and avoided a set of automatic budget-related cuts that would have reduced Medicare spending by roughly $500 billion over the next decade. The temporary funding measure runs through January 30, 2026 and allows Congress more time to work on longer-term budget solutions.
What’s Next for ACA Premium Tax Credits
A major topic in upcoming negotiations is whether to extend the enhanced premium tax credits originally introduced as part of the post-Covid Inflation Reduction Act of 2021. Those enhanced credits currently help tens of millions of Americans reduce their monthly health insurance premiums and have played a significant role in keeping coverage more affordable for many Colorado residents.
These enhanced credits are scheduled to expire at the end of the year unless Congress acts. Without an extension, premiums could rise significantly for about 24 million people nationwide who purchase their own health insurance through ACA exchanges.
As recently as yesterday on CNN’s State of the Union, Dr Mehmet Oz who heads CMS (Centers for Medicare and Medicaid Services) said the Trump administration is discussing the possibility of extending subsidies under the Affordable Care Act. He added, “There are discussions around extending the subsidies, if we deal with the fraud, waste and abuse that, right now, is paralyzing the system.”
Bipartisan Negotiations Still to Come
Lawmakers in both chambers of Congress have said they intend to discuss whether and how to extend these credits before the 12/31/2025 deadline. While some members support a continuation—with or without modifications—others have expressed interest in broader changes to the ACA or in letting the enhanced subsidies end as scheduled.
As with many health-care-related issues, opinions vary, and reaching bipartisan agreement may take time. Although Senate leaders have committed to holding a vote by mid-December, the outcome remains uncertain.
Possible Approaches Under Discussion
Current ideas being discussed on Capitol Hill include:
- A short-term extension of the enhanced tax credits
- A multi-year extension to provide more stability for consumers
- Modifications such as adjusting income thresholds or phasing out zero-premium options
- Broader structural changes to how financial assistance is delivered, perhaps direct to consumer HRA or HSA contributions.
At this stage, these are only proposals—no final decisions have been made.
What Consumers Should Know
For now, nothing has changed about the premium tax credits available for 2025 coverage and the enhanced premium tax credits are scheduled to expire after 12/31/2025. Consumers who enroll during the current Open Enrollment Period will continue to receive the subsidies they qualify for under existing law.
We’re Here to Help
Health policy developments can be complicated, and we’re committed to explaining them in clear, practical terms. As updates become available, we’ll continue to provide guidance to help you make informed decisions about your health insurance options.
Colorado Health Insurance Brokers will continue to monitor developments and if Congress reaches an agreement, we’ll share updates about how any changes may affect premiums and plan choices for individuals and families here in Colorado.
If you have questions about your coverage or need help reviewing your plan, our licensed Colorado health insurance brokers are here to assist you.
