As costs soar, about 70K fewer Arizonans sign up for Obamacare

Thursday is the last day for open enrollment for Affordable Care Act health plans. Enhanced premium tax credits that lowered costs for most enrollees expired this year.

And more than 70,000 Arizonans now appear to be dropping their coverage.

The tax credits were introduced in 2021 as part of the pandemic relief package, the American Rescue Plan Act. And the cost savings created by the credits contributed to a surge in enrollment in ACA marketplace plans in the years since.

Arizona's ACA enrollment increased 177% from 2020 to 2025, according to  the health policy research organization KFF.

But without the tax credits, enrollees are now seeing their costs increase 114% on average, according to KFF.

According to data from the Centers for Medicare and  Medicaid Services, at this point last year, a record 423,025 Arizonans had selected plans. As of this Monday, 353,000 Arizonans had signed up — about a 17% decrease.

And some who aren’t dropping their coverage are choosing plans that cover less. That’s what Arizonan Robert Hess did. He has relied on the ACA marketplace for health care since it launched in 2014 because he is self-employed. He said he didn’t want to go without coverage this year, but couldn’t afford to pay hundreds more per month without subsidies.

“I made the tough decision to reduce my plan. So I went from a silver plan to a bronze plan because that's what I could fit in my budget,” Hess said during a call with reporters Wednesday.

Arizona’s congressional delegation remains split along party lines on whether to extend the subsidies.