Health Insurance Prices to Rise Again: What to Expect in 2026

Rising Health Insurance Costs in 2026

Consumers who purchase health insurance through the Affordable Care Act (ACA) marketplace are expected to face significant rate increases next year. According to an analysis by the Peterson-KFF Health System Tracker, insurers plan a median premium increase of 15% for 2026 plans. This would mark the largest ACA insurance price hike since 2018.

The rise in premiums is driven by several factors, including medical cost inflation, the expiration of tax credits introduced during the previous administration that made plans more affordable, and tariffs on prescription drugs and medical devices. These elements contribute to the overall financial burden on consumers and insurers alike.

Impact on Employers and Employees

Working-age consumers who obtain health insurance through their employers may also see changes. A report from benefits consultant Mercer indicates that over half of large employers anticipate shifting a larger share of insurance costs to employees and their families in 2026. This could involve increasing deductibles, copays, or out-of-pocket requirements.

Employers are adjusting their health benefit strategies as costs continue to rise. Mercer’s research found that 51% of large employers are likely or very likely to shift more costs to workers, compared to 45% a year ago. The projected 6% increase in employer health benefits costs for 2025 and potential higher increases in 2026 have prompted companies to modify insurance plan options.

Changes in Enrollment Policies

Several policy changes under the previous administration are also affecting ACA coverage. A federal rule has ended a special sign-up period for individuals earning less than 150% of the federal poverty level. This group previously benefited from year-round enrollment, making it easier for families to access coverage. Additionally, automatic ACA enrollment renewals will no longer be available, requiring consumers to update their income and other information annually.

These changes aim to address concerns about fraud and abuse within the healthcare system. Officials from the Trump administration have criticized previous enrollment policies, stating they allowed misuse of taxpayer-subsidized insurance programs. The Centers for Medicare & Medicaid Services reported discovering 2.8 million Americans potentially enrolled in multiple insurance plans, prompting actions to prevent such overlaps.

Expiration of Tax Credits

Another major factor contributing to rising premiums is the expiration of pandemic-era tax credits. These credits significantly reduced the cost of ACA plans for many consumers and led to record-high enrollment. However, they will end at the end of 2025, leading to an estimated 5 million people losing health insurance.

The Congressional Budget Office estimates that the expiration of these tax credits will increase average out-of-pocket premium payments by more than 75%. Healthier enrollees may choose to drop their coverage, leaving insurance plans with sicker patients who require more medical care. This could further drive up costs for remaining members.

Rate Hikes and Regulatory Approval

KFF's review of 105 ACA insurers across 19 states and Washington, D.C., revealed that most are seeking rate hikes of 10% to 20% for 2026 coverage. Approximately 28 insurers are proposing rate increases of 28% or more. State and federal insurance regulators must approve these proposed rate hikes before they are finalized this fall.

As the healthcare landscape continues to evolve, consumers should stay informed about potential changes and how they may affect their coverage and costs. Understanding these shifts can help individuals make more informed decisions about their health insurance options.