5 Million People Lost Health Insurance in the U.S. After Government Removed Subsidies

Hispanic families are facing a new financial challenge: keeping their health insurance coverage.

A Protect Our Care report concludes that more than 5 million people lost their health insurance during the past year, a decline that coincides with Medicaid cuts and the expiration of Obamacare subsidies.

Why it matters: For many families, health insurance represents one of the largest expenses in their household budget.

Rising premiums and the loss of federal assistance could force some households to dedicate a larger portion of their income to healthcare or even leave them without coverage.

More Than 5 Million Lost Health Insurance Coverage in the U.S.

Data collected by Protect Our Care shows that the total number of people enrolled in Medicaid, CHIP (Children’s Health Insurance Program), and ACA plans dropped from more than 105 million to just over 100 million during the last 12 months.

This represents an estimated loss of more than 5 million beneficiaries.

Health insurance coverage loss in the U.S. – PHOTO: Shutterstock

The largest portion of the decline occurred in Medicaid and CHIP, programs that saw a decrease of more than 3.8 million enrollees. Meanwhile, plans purchased through the ACA lost nearly 1.2 million participants.

According to the report, legislative changes approved last year and new eligibility restrictions have contributed to this nationwide decline in health insurance coverage loss in the U.S.

The End of “Obamacare” Subsidies Made Health Insurance More Expensive

One of the most significant changes was the expiration of expanded ACA tax credits, which helped millions of people reduce the monthly cost of their health insurance plans.

According to data cited by KFF, these subsidies allowed beneficiaries to save an average of $705 during 2024. Without that assistance, premiums would have been approximately 75% higher.

The situation became even more complicated when several insurance companies increased their rates.

As a result, many families began facing major increases in their monthly payments, making it more difficult to keep their policies active.

Health insurance coverage loss in the U.S. – PHOTO: ChatGPT

Middle-Class Families Are Also Feeling the Impact

Although Medicaid is often associated with low-income individuals, the problem extends far beyond that group.

ACA subsidies benefited independent workers, small business owners, people approaching retirement, and middle-income families who do not receive health insurance through their employers.

At the end of last year, Senator Ruben Gallego used an example to illustrate the scale of the issue:

According to his explanation, a couple earning $85,000 per year could end up paying around $25,000 annually for health insurance, a figure close to 30% of their income.

Everyone needs to see this: If Republicans succeed in letting ACA subsidies expire a couple making 85k/year will see their health care premiums skyrocket to $25,000. Almost 30% of their income!!

This will devastate middle-class Americans. pic.twitter.com/OewoVBVqHH

— Ruben Gallego (@RubenGallego) October 7, 2025

For many households, taking on an expense of that size means cutting other essential costs or reconsidering whether they can continue paying for coverage.

Why Are Experts Worried Premiums Could Keep Rising?

Analysts also warn about a possible domino effect.

When costs increase, younger and healthier people are often the first to leave their plans because they feel the expense is no longer worth the benefit.

This leaves the insured population with greater medical needs and higher overall costs.

As insurers face rising expenses, they may respond by increasing premiums again. This creates a cycle that could cause even more people to abandon their policies.

States With the Greatest Impact From Health Insurance Coverage Loss

Some states account for a large share of the coverage losses recorded over the past year.

Health insurance coverage loss in the U.S. – Source: protectourcare.org

In Medicaid and CHIP:

California: more than 1.12 million fewer enrollees.

New York: more than 461,000 fewer.

Indiana: more than 259,000 fewer.

Texas: more than 185,000 fewer.

In ACA plans:

North Carolina: more than 213,000 fewer.

Florida: more than 196,000 fewer.

Georgia: more than 186,000 fewer.

Ohio: more than 113,000 fewer.

These figures show that the issue is not limited to one region, but affects states with very different economic and demographic profiles.

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What Comes Next

Protect Our Care argues that the losses observed so far could represent only part of the total impact.

The main concern is that millions of people could face increasingly expensive costs to maintain their health insurance coverage in the U.S.

If premiums continue rising and more people leave their health plans, the market could face additional price increases in the coming years, especially affecting those who depend on individual coverage to protect their families.