Rising Health Insurance Premiums for 2026

Predictions indicate that health insurance premiums will increase at the highest rate in over five years for 2026. Analysis from KFF reveals that plans under the Affordable Care Act (ACA) are experiencing the most significant hikes.

If the ACA’s premium tax credits are not renewed by the end of 2025, many families could face substantial out-of-pocket expenses.

Key Factors Contributing to Increases

Here’s a look at some of the current trends:

• Healthcare Cost Delays: While overall inflation peaked three years ago, healthcare expenses have traditionally risen more gradually and are only just catching up.
• Recruitment Costs: Hospitals and clinics are incurring higher expenses to attract and retain staff, which gets passed on to patients and insurers.
• Provider Integration: Matt McGough, a KFF Policy Analyst, notes the trend of larger healthcare systems absorbing local clinics.
• Weight Loss Medications: Cardiologist Dr. Peter McCullough has pointed out that around half of Americans qualify for medications like Ozempic for obesity and diabetes. The cost of these drugs is approximately $800 monthly, which inflates insurance costs. McGough adds that those who choose to cover these drugs are raising premiums quickly.
• Potential Tariffs: Proposed tariffs on imported medications and medical devices could impact premiums in 2026, although it remains to be seen if they will take effect or change through negotiations.

There are still questions about:

• Whether Congress will renew the extended ACA grants before year-end.
• The specifics of how insurance companies will adapt coverage in response to the emergence of expensive drug categories.

By the Numbers

• 9%: Average increase forecast for employer-sponsored health plans.
• 20%: Anticipated rise for individual ACA market plans.
• 75%: Potential additional cost increase for consumers if ACA subsidies end.
• $800+ per month: Price tag for GLP-1 weight loss drugs like Ozempic.

Why does this matter? According to Gallup polling, satisfaction with the U.S. healthcare system reached a 24-year low in 2024, with rising costs being a major concern.

The expected premium hike for 2026 could compel many families to seek lower-cost coverage or even drop their insurance altogether.

Looking ahead, the next open enrollment for ACA Marketplace Plans will start in November 2025. Congress will need to extend grants before the year ends.