Why Your Health Insurance Costs Will Soar in 2026
While health insurance premiums — that is, the amount that you pay every month for insurance — tend to rise modestly across the board each year, 2026 is going to be a doozy for millions of Americans.
Whether you get your health insurance through your employer, the federal government or the Affordable Care Act marketplace, monthly premiums are expected to increase much more than usual next year.
In particular, premiums for coverage through the ACA marketplace — aka Obamacare — are expected to skyrocket, because enhanced tax credits that keep costs down for most enrollees are expiring at the end of 2025. Several attempts to extend the credits have already failed, and Congress does not appear close to a deal despite the looming deadline.
The debate over Obamacare tax credits has been a flashpoint for rising health care costs. Increasingly, Americans say they are fed up.
According to a December survey from Gallup, just 16% of Americans say they are satisfied with the cost of health care in the U.S., marking the lowest reading in over two decades. Meanwhile, a record 23% of respondents say the U.S. health care system is “in a state of crisis,” with others declaring that it has “major problems.”
Fortunately, there are a few (small) steps you can take to control your health care costs. Experts say now is the time to try to mitigate some of the damage.
“Don’t go into 2026 on autopilot,” Nicole Lamoureux, president of the nonprofit National Association of Free & Charitable Clinics (NAFC), says in an email. “This is a year when actively reviewing coverage options really matters.”
Here’s a closer look at what’s in store next year for the most common health plans.
Affordable Care Act plans (Obamacare)
Since the start of the pandemic, the number of Americans enrolled in an Obamacare plan has jumped from about 11 million to over 24 million. Throughout this period, plans have been heavily subsidized by the federal government through tax credits, which have kept costs down for the vast majority of enrollees.
At the end of the year, those pandemic-era tax credits are set to expire. Premiums will spike as a result.
According to KFF, a health policy nonprofit, about 92% of enrollees currently receive the tax credits and face a 114% premium increase in 2026 after the credit expires. Average annual costs are estimated to rise from $888 to $1,904.
“For families already stretched thin, increases of this magnitude aren’t incremental,” Lamoureux says. “They’re destabilizing.”
When weighing your options in the marketplace, she says it’s critical to compare them carefully this year given the higher prices from a shrinking number of providers.
“Look beyond monthly premiums,” Lamoureux adds. “Factor in deductibles, out-of-pocket limits and provider networks.”
Workplace plans
Nearly half of the U.S. workforce — about 80 million people — gets their health insurance through their employer, and this type of insurance is slated for an abnormal price hike next year, too.
Premiums are set to rise between 6.7% and 9% in 2026, according to recent estimates. Employers are saying the increased costs are largely due to rising prescription drug prices and increased cancer diagnoses and treatments.
According to KFF, employers typically pay between 75% and 85% of the plan’s expenses and pass the rest onto workers. The remainder is usually deducted from their paychecks in the form of premiums. For 2026, employers are planning to shift more of those costs onto workers.
Higher premiums aren’t the only way companies can push more expenses onto you, Lamoureux notes. Increased deductibles are another tactic, requiring you to pay a higher out-of-pocket costs upfront before your benefits kick in.
Many companies start their annual enrollment periods for health insurance in the fall for coverage that starts at the beginning of the year. Now is the time to ask questions to your company’s HR about what's changing, she says.
Medicare
Traditional Medicare enrollees are also bracing for sticker shock. Premiums for Part B health insurance are expected to jump by nearly 12% next year — to $206.50, according to the Centers for Medicare & Medicaid Services, or CMS. Premiums for Part D prescription drug coverage may also rise.
Given that the open enrollment period for traditional Medicare ended on Dec. 7, it may be too late to make changes for 2026 coverage for some.
However, folks enrolled in Medicare Advantage plans, which are private insurance plans that meet specific Medicare criteria, have a separate enrollment period where they can make changes from Jan. 1 to Mar. 31. During this time, Medicare Advantage enrollees can switch to a different Medicare Advantage plan, go back to traditional Medicare and/or add (or remove) prescription drug coverage.
The three largest providers of Medicare Advantage plans are pulling back their coverage in 2026, impacting an estimated 1.2 million Americans. Those who were affected should have received an Annual Notice of Change in the mail by Sept. 30.
Amid a flurry of changes, experts say it’s important to lean on the free, legitimate assistance programs to make sense of it all. One prime resource is State Health Insurance Assistance Programs, or SHIPs. They are available nationwide and offer free advice for enrollees.
Medicare.gov also offers a user-friendly coverage comparison tool, and the 1-800-MEDICARE hotline is available to offer advice and troubleshooting assistance as well.
Know your options
Given the scale of price increases coming for both public and private health insurance, it may be difficult to avoid higher premiums. Mitigation is the name of the game.
Ask questions now. Seek assistance early. And, as KFF President Drew Altman argued in a recent column, don’t expect any eleventh hour reprieve from a hyperpartisan Congress.
As 2026 approaches, Lamoureux (with NAFC) says free health clinics all around the country are gearing up for a surge of new patients, as increased costs are likely to lead to many people forgoing health insurance.
If you end up losing health coverage, NAFC offers a search tool that allows you to look for clinics providing free or low-cost care by ZIP code.
“Early care is always better for health outcomes and for costs., she says. “Reviewing options carefully, enrolling on time and knowing where to turn for care can make a meaningful difference during a year of major change like this.”
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