Big Changes In Health Insurance!

We previously noted in newsletters of changes that will take place this next year. You can review previous newsletters Here.

Correction

The Affordable Care Act Open Enrolment periods have been clarified. Plan Year 2026 Open Enrollment will be November 1st 2025 - January 15th 2026. Plan Year 2027 Open Enrollment will be November 1st 2026 - December 15th 2026.

Tax Credit Reduction

The Affordable Care Act Tax Credit Subsidies were increased under the Inflation Reduction Act, along with the removal of the tax credit threshold. However, this change expires at the end of 2025 and it has not been extended. The tax credit threshold is the income amount in which a person would lose all tax credits based on income. Since this has not been extended, most people will lose all or some of their tax credits on the Affordable Care Act plans.

Please remember, the renewal premium you receive in October reflects the current year (2025) tax credit and not the correct 2026 tax credit since the federal government mandates insurance companies send out renewals prior to the federal government providing the updated tax credits. This means the premium listed on your renewal will probably be wrong.

Term Health Insurance Plans Are Back

On August 7th, the Centers of Medicare & Medicaid Services (CMS) announced it will not enforce President Biden's limitation of 3 months on term health insurance while reviewing rules, as there is an ongoing court case in the legality of this limitation. That means many states, including Iowa, may continue term health insurance for up to 3 years.

Pros of Term Health Insurance

Often a lower premiums compared to ACA plan with no tax credit

Nationwide PPO networks

Cons of Term Health Insurance

Health Underwriting

Pre-existing conditions may not be covered for a certain time period