News Summary
As the federal government shutdown extends into its second month, Louisianans are preparing for significant increases in health insurance premiums. The expiration of crucial federal subsidies could lead to a steep drop in marketplace enrollment, affecting around 85,000 residents. Without these enhanced premium tax credits, many families will struggle to maintain affordable coverage, with projected monthly costs skyrocketing. Legislative decisions in the coming weeks will determine the future of these subsidies and impact numerous families in Louisiana.
New Orleans, Louisiana – As the federal government shutdown continues into its second month, Louisianans are bracing for steep increases in health insurance premiums due to the looming expiration of crucial federal subsidies. The shutdown, which began on October 1, 2025, has led to a standoff regarding health insurance subsidies designed to keep coverage affordable for residents throughout the state.
The enhanced premium tax credits, initially introduced during the pandemic by the American Rescue Plan Act, significantly lower monthly insurance costs for individuals purchasing coverage through the Affordable Care Act (ACA) marketplace. The expiration of these subsidies at the end of 2025 is projected to have drastic consequences for Louisiana’s health insurance landscape. About 85,000 people are expected to lose coverage, resulting in a staggering 61% drop in subsidized marketplace enrollment in the state.
Since 2023, Louisiana has seen a surge in marketplace enrollment, growing from approximately 120,000 to nearly 300,000 currently. A significant number of individuals moved to marketplace subsidies after losing Medicaid coverage, but many of these subsidies may disappear if the federal assistance is halted. The type of health insurance coverage available to residents could change drastically, with uninsured individuals or those unable to afford premiums facing limited options.
Financial ramifications of these changes are already becoming evident. For example, a 60-year-old couple in Louisiana earning $85,000 could witness their monthly insurance costs soar from $600 to $2,000. Additionally, a family of four with two adults in their 50s earning $90,000 would see their costs rise from about $390 to $700 per month. Meanwhile, under pre-pandemic subsidy structures, a single person making approximately $50,000 could expect to pay around $415 monthly; with enhanced subsidies, that cost has dropped to about $270.
On average, the benchmark silver plan premium for a 40-year-old enrollee in Louisiana is around $540 per month. Disturbingly, those earning above 400% of the poverty level will lose all federal assistance, which means they will have to bear full premium costs. The extension of these subsidies is estimated to cost the federal government around $23 billion next year and approximately $350 billion over the next decade.
The ongoing government shutdown has left lawmakers frustrated, including U.S. Senator John Kennedy (R-Madisonville), as discussions around the future of health insurance subsidies remain unresolved. Since 2018, health insurance costs in Louisiana have risen by approximately 35%, and new analyses indicate that insurers are planning an average 15% increase in premiums for 2026—marking the steepest increase in over five years.
Supporters of extending subsidies contend that these financial aids have played a significant role in reducing the uninsured population and keeping the insurance pool healthy. As open enrollment for ACA plans begins on November 1, 2025, insurers are preparing for a reality where enhanced subsidies may not continue.
Various factors are contributing to the increase in health insurance premiums, including surging hospital and physician service costs, higher medication prices, and a shortage of healthcare workers. Currently, up to 96% of Louisiana’s marketplace enrollees receive subsidies averaging $666 per month, which reduces their premiums to around $107.
Families in Louisiana may soon find themselves facing substantial increases in health insurance payments if enhanced subsidies do not continue due to the expiration of federal assistance. Legislative decisions in the coming weeks could alter the fate of enhanced subsidies, impacting countless families struggling to maintain comprehensive health coverage amidst rising costs.
Deeper Dive: News & Info About This Topic
- Nola: Louisiana Health Costs & Subsidies
- Louisiana Illuminator: Health Insurance 2025
- Forbes: Medicare Advantage in Louisiana
- Google Search: Health Insurance Louisiana
- Louisiana Illuminator: Pharmacy Middleman Changes
- Encyclopedia Britannica: Health Insurance
Author: STAFF HERE NEWORLEANS WRITER
NEW ORLEANS STAFF WRITER The NEW ORLEANS STAFF WRITER represents the experienced team at HERENewOrleans.com, your go-to source for actionable local news and information in New Orleans, Orleans Parish, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as French Quarter Festival, New Orleans Jazz & Heritage Festival, and Essence Music Festival. Our coverage extends to key organizations like the New Orleans Chamber of Commerce and Greater New Orleans, Inc., plus leading businesses in energy, healthcare, and education that power the local economy such as Entergy, Ochsner Health, and Tulane University. As part of the broader HERE network, including HEREShreveport.com, we provide comprehensive, credible insights into Louisiana's dynamic landscape.
