We’ll be frank: You will likely pay more in 2026. However, our family is here to help protect your interests. Here is what you should know now about the future of health insurance premiums.
Over 24 million Americans are expected to face higher costs due to a combination of increasing healthcare expenses, the high cost of new medications, and the end of enhanced federal subsidies. This could lead to the highest premium increases in years for the Affordable Care Act (ACA) plans.
According to recent analysis of insurers’ 2026 filings, the median proposed premium increase across more than 300 insurers is 18%—with most increases falling between 12% and 27%.
We’ll be honest, we do not fully know the future of post-Covid-era increased subsidies. With over 125 insurers predicting premium increases of 20% or more—which represents the sharpest rise since 2018—the final rates for 2026 are still being finalized. As changes occur, we are keeping our clients informed to ensure they are as protected as possible. If you have any questions about the current state of healthcare and your insurance plan, please feel free to contact us.
What’s Driving the Surge?
People are dealing with increasing costs and inflation in many areas, including healthcare.
Medical expenses continue to rise sharply, with hospitals, doctor visits, and prescription drugs being major contributors. Insurers are reporting medical inflation rates between 8% and 10% each year. In an effort to manage these rising costs, some insurers have stopped covering certain medications.
In addition to this, there is a potential policy change on the horizon. As we mentioned, the enhanced premium tax credits, introduced in 2021 as part of pandemic relief, are set to expire at the end of 2025. If Congress allows these credits to expire, monthly out-of-pocket costs for people who receive them are expected to increase by about 75% on average. This increase will happen in addition to the usual premium hikes from insurers.
The loss of these subsidies is projected to contribute about 4 percentage points to the upcoming 2026 rate increases. This is partly because insurers anticipate that healthier individuals may choose to leave their coverage when subsidies decrease, resulting in a riskier group of enrollees.
Insurers are also preparing for possible tariffs on medical supplies and drugs, which could raise premiums by approximately 3 percentage points.
What This Means for Healthcare Consumers
For someone who is enrolled in a subsidized plan and pays $100 each month, their costs could go up to $175 in 2026—a yearly increase of $900—if the enhanced subsidies are no longer available. While a person who currently pays $200 a month might see their bill rise to $350. These numbers don’t account for the fact that insurance companies may also raise their rates beyond the loss of the subsidies.
The effect could affect a large number of people. Again, around 24.2 million Americans are currently covered by health plans through the ACA, more than double the number from four years ago. Much of that increase in coverage has come from the enhanced subsidies, which are now under consideration for removal.
Pulse Check: The Stakes for Congress and Consumers
The implications are significant for both lawmakers and healthcare consumers. Should lawmakers extend the federal subsidies, many households could avoid most of the increases in out-of-pocket payments. Yet, they would still face the underlying premium price hikes influenced by inflation and rising prescription drug costs. Without action, on the other hand, the combined effect could create a price shock for millions who have depended upon ACA coverage.
The 2025 federal budget reconciliation law did not include a renewal of the enhanced subsidies, although it did address other key health provisions. Unless Congress acts separately, expect the subsidies to expire at year’s end.
Make Sense of Health Insurance With McKnight & McKnight
Around here, we care about keeping the promise of affordable coverage.
As you navigate through these uncertain times, understanding your health insurance options is more important than ever. The future of COVID-era increased subsidies is still uncertain, underscoring the need for clarity and proactive planning. We encourage you to discuss your health insurance needs with professionals like us who can help unravel the complexities.
Contact McKnight & McKnight for a personalized consultation. Our team is ready to guide you through your choices and help ensure you have the coverage you need.
“Always ready to discuss various plans and provide insights on more cost-effective options that cater specifically to my medical requirements. His expertise and willingness to help make the process much easier.”-Ann Marie C.
Let’s discuss your insurance coverage today! Schedule an appointment with us via phone or online here. We make the process simple, fast and friendly!
