Nearly 400,000 Virginia residents face steep premium increases following the lapse of critical federal subsidies, according to healthcare advocacy groups.
Health insurance premiums are expected to increase for hundreds of thousands of Virginians after Congress did not extend Affordable Care Act tax credits before January 2026, according to reports from healthcare advocacy organizations.
Virginia healthcare coverage at risk as federal subsidies end
According to advocacy group Protect Our Care, nearly 400,000 Virginians will see their yearly premiums increase by an average of over $700, while another 350,000 residents could lose their health insurance coverage entirely.
Beth O’Connor with the Virginia Rural Health Association explained the role these subsidies have played in an interview: “The tax credits essentially have allowed people who don’t have employer-subsidized health insurance to be able to get health insurance for themselves and their families at a rate that they can afford.”
Protect Our Care estimates that Virginia hospitals could lose approximately $92 million in funding due to the subsidy lapse.
Rural healthcare providers face mounting challenges
Rural communities and their healthcare facilities may be disproportionately affected by this change, according to healthcare experts. O’Connor warned about the potential consequences for rural hospitals, particularly in Southwest Virginia.
“It makes it harder for hospitals, especially for rural hospitals who have a high percentage of people who don’t have insurance, to be able to pay their bills and keep their doors open,” O’Connor stated. “If a higher percentage of the population doesn’t have insurance, that means those people are likely to wait until a problem is very bad to see the doctor.”
Healthcare policy analysts note that delays in seeking care can create additional financial pressure on rural healthcare systems that operate on thin margins.
Congressional deadlock prevents solution
House Speaker Mike Johnson canceled a December vote on extending the credits as Republicans remain divided on the approach, according to congressional reports. Sources familiar with the negotiations indicate moderate Republicans favor a short extension of the subsidies, while more conservative members have called for spending concessions for any extension.
Democrats and several Republicans have signed a discharge petition in an attempt to force a vote on the matter later this month, according to congressional records. The outcome remains uncertain as discussions continue in Washington.
Healthcare affordability concerns for Virginia families
For many Virginia families, particularly those self-employed or working for small businesses without employer-sponsored healthcare, the expiration of these tax credits raises questions about future coverage options, according to healthcare enrollment specialists.
Affected residents now face decisions between paying higher premiums, seeking alternative coverage options, or potentially going without health insurance, healthcare navigators report.
Healthcare advocates and insurance counselors are encouraging Virginia residents to explore all available options, including checking eligibility for Medicaid expansion coverage or investigating alternative marketplace plans.
