A record 16.6 million Americans have enrolled in health insurance for 2025 through the Affordable Care Act (ACA), also known as Obamacare, according to a Dec. 20 announcement by the Biden administration.
The Centers for Medicare and Medicaid Services (CMS) described this as “the highest ever” enrollment for ACA coverage starting on Jan. 1, 2025.
Of the total enrollees, 2 million are new to the program, while the remaining consist of returning participants. These individuals are set to receive up to a full year of health coverage.
The data reflects selections in the 31 states that utilize the HealthCare.gov marketplace, highlighting the ACA’s sustained popularity and its importance in providing access to health care.
CMS Administrator Chiquita Brooks-LaSure hailed the record-breaking enrollment as evidence of the critical need for affordable health care coverage. She encouraged Americans to act quickly to secure ACA plans and benefit from the enhanced tax credits available for 2025, which aim to reduce costs for enrollees.
The federal government has extended the deadline for enrollment that begins Jan. 1, 2025, from Dec. 15 to Dec. 18. Additionally, individuals can still sign up for plans that begin in February 2025 until Jan. 15, 2025.
Despite the milestone, the ACA faces significant legal and legislative challenges.
Several states, including 15 that filed lawsuits earlier this year, are contesting federal expansions of ACA coverage. A federal court recently blocked plans to extend Obamacare coverage to certain undocumented immigrants, including Dreamers, in 19 states.
During the 2024 open enrollment period, 21.3 million people signed up for ACA plans, including 5 million first-time enrollees.
However, the program’s future is uncertain. Outgoing President Joe Biden has urged Congress to extend the ACA, warning of dire consequences if health care subsidies are allowed to expire at the end of 2025.
In a statement on Dec. 6, Biden stated that health care should not be a privilege.
“Millions of Americans are benefiting from expanded premium tax credits that lower their premiums. If Congress takes that benefit away, premiums will spike, and 3.8 million people will become uninsured,” he said.
The Congressional Budget Office (CBO) echoed Biden’s concerns, projecting that the removal of expanded tax credits could lead to significant premium increases and a reduction in marketplace participation.
The report predicts that without an ACA extension, the number of uninsured Americans could rise by 2.2 million in 2026 and by an average of 3.8 million annually between 2026 and 2034. Additionally, gross benchmark premiums are expected to increase by 7.9% on average during the same period.
The ACA continues to be a polarizing issue in American politics, with proponents praising its role in expanding healthcare access and critics raising concerns about costs and government overreach.
As enrollment reaches record levels, the program’s ability to maintain affordability and accessibility while addressing its critics remains a significant challenge for policymakers in the coming years.