The End of Enhanced Subsidies: How Rising Costs are Reshaping Michigan’s ACA Marketplace

October 12, 2026

For thousands of Michiganders, the Affordable Care Act (ACA) Marketplace serves as an important source of health insurance when employer-sponsored coverage or Medicaid is not available. Between 2020 and 2025, enhanced federal premium subsidies helped make Marketplace coverage more affordable and contributed to substantial enrollment growth. In 2026, those enhanced subsidies expired, and early evidence suggests the change is already making coverage less affordable for many Michigan residents.

A new CHRT issue brief, The End of Enhanced Subsidies: How Rising Costs are Reshaping Michigan’s ACA Marketplace, examines the early effects of these policy changes in Michigan. The findings show that Marketplace consumers are paying more for coverage, shifting to plans with higher deductibles, and leaving the Marketplace at higher rates than seen nationally.

Key Takeaways:

What happened

• Reduced subsidies: Enhanced premium subsidies for health insurance purchased through the ACA Marketplaces expired at the end of 2025, sharply raising costs for many Michigan enrollees.
• Bureaucratic hurdles: Impending regulatory and legislative changes will mean fewer people qualifying for premium subsidies and more paperwork.
Implications for Cost

• Premium increases: Between 2025 and 2026, annual enrollee premium payments went up by about $1,000 on average, an increase of roughly 70% in Michigan. But for many, the loss of enhanced subsidies caused an even greater increase. Premium increases are especially large for Michiganders with individual incomes above $64,000 (400% of the Federal Poverty Level) because they no longer qualify for any premium subsidy. For older individuals in this income range, such as early retirees,
annual premiums increased by more than $10,000.
• Out-of-pocket cost increases: Because many enrollees responded to the premium increases by switching to less generous plans, the average deductible faced by Michigan Marketplace enrollees increased by over $1,000. Considering both premium payments and patient cost-sharing, total average spending per enrollee is expected to be roughly $1,800 higher in 2026 than in 2025, an increase of 58%.
Enrollment Impact

• Initial enrollment decline: As of February 2026, 130,000 fewer Michiganders have coverage through the Marketplace compared to one year before. This represents a 27% decline, more than twice the nationwide decline of 12% over the same period.
• Prospect for the future: Enrollment is likely to drop more in 2026 and 2027 as additional changes take effect and insurers raise premiums further.

Read the full issue brief to learn more about the trends, costs, and policy implications shaping Michigan’s individual insurance market.