Health Insurance Premiums Skyrocket for Many Americans
Kate Bivona, a 37-year-old musician and teacher from Tempe, Arizona, was taken aback by the new health insurance premiums for 2026. Last year, her and her husband’s monthly payment for a silver tier Healthcare Marketplace plan was only $118. Now, they would face a cost of over $400, which feels impossible given their combined annual income of around $50,000.
“I was both angry and worried,” she noted in an email. “Our premium has jumped by nearly $300 a month. As freelance musicians and teachers on modest incomes, we certainly can’t spare that kind of money.”
On December 31, 2025, Congress failed to renew the pandemic-era premium tax credit that had significantly lowered insurance costs under the Affordable Care Act, better known as “Obamacare.” With the expiration of these enhanced credits, premiums are projected to increase by an average of 114 percent, according to KFF, a health policy research organization.
Moreover, rising insurance costs are concerning, with at least one in five consumers reporting their medical expenses have grown faster than their grocery and utility bills. By 2026, 66 percent of Americans are expected to fret more about their healthcare costs than basics like food, utilities, or gas.
Some premium hikes are staggering. In Maine, a woman with multiple health issues had to cancel her insurance after her premium ballooned from $201 to $2,864. A couple in West Virginia saw their monthly premium soar from $255 to $2,155, nearly trebling their $750 mortgage payment.
While such extremes may not apply to everyone, many are still feeling the pressure and are forced to make tough decisions between the financial burden of higher premiums and the reduced health protection that comes from downgrading their plans. Bivona is among 23 million Americans facing this dilemma. She and her husband opted to switch from a silver to a bronze plan.
Silver plans generally have lower deductibles and may include co-pays for doctor visits. In contrast, bronze plans tend to have lower premiums but higher deductibles and cover fewer medical expenses until individuals meet their deductible. So, while they remain insured, the couple will have to cover the full costs of most medical claims until they hit an $18,000 deductible.
“I couldn’t afford a premium hike, so I made the tough decision to downgrade to a Bronze plan, which has a very high deductible,” she explained. “We’re relatively healthy and typically only see the doctor once a year, so we decided to take this risk.”
Bivona worries that any unforeseen medical bills could leave them in a difficult financial situation. “I just hope nothing will happen,” she added.
Suman Bhattacharya, a 49-year-old writer and journalist in Philadelphia, faced similar anxieties during this year’s health care enrollment period. She delayed checking the costs of her insurance until just before the enrollment deadline because of the political heatedness surrounding health insurance premiums.
“I really didn’t want to look at the Pennsylvania health insurance exchange until I had to,” Bhattacharya mentioned in an email. “After talking to friends on ACA plans, we decided to compare our options together.”
She found the premium increase for her gold tier plan was about $200 more than expected, bringing her monthly payment to $1,124. Although she could save some money by downgrading to a silver plan, she actually needed higher coverage for a pre-existing condition that required more medical care.
In the end, Bhattacharya found another gold tier plan that would keep her premiums around $934, which she felt was significantly better than sticking to her previous plan, which would have put her in a tricky financial position.
“If I’d kept that plan, it would have hurt financially, especially since my income can vary,” she explained. “I likely would have had to cut back on things like dining out and groceries.” By now, her insurance premiums already took up a large slice of her income.
“My income fluctuates quite a bit,” she added. “In tougher months, managing fixed costs like insurance can eat up a third of our income.” For the moment, it appears health care costs will keep rising unless Congress agrees on a new extension.
