Kate Bivona, a 37-year-old musician and teacher from Tempe, Arizona, was taken aback when she and her husband reviewed their 2026 health insurance premiums. Last year, they were paying $118 monthly for a silver tier plan through the Healthcare Marketplace, a federal platform for individuals lacking employer-provided insurance. But now, the price has skyrocketed to over $400—an amount their combined annual income of about $50,000 simply can’t withstand.
“I felt angry and very worried,” she expressed via email. “Our 2025 premium has risen by nearly $300 a month. We both work as freelance musicians and teachers, and there’s no room for that in our budget.”
Congress let the pandemic-era premium tax credit, which helped lower costs under the Affordable Care Act, lapse on December 31, 2025. As a result, premiums are projected to surge by an average of 114 percent, as per research from the health policy group KFF.
Many Americans are feeling this pinch; KFF reports that one in five consumers says their medical costs are climbing faster than their expenses for food and utilities. By 2026, around 66 percent of people expect to worry more about affording health insurance than buying groceries or paying utility bills.
For some, these premium hikes are catastrophic. A woman in Maine with several health issues had to forgo her insurance after her monthly costs jumped from $201 to $2,864. In West Virginia, a couple saw their premiums soar from $255 to $2,155—almost tripling their mortgage payment of $750.
While not everyone is facing such extreme increases, many are forced into tough decisions, weighing the financial burden of rising premiums against the potential loss of healthcare protection by downgrading their plans. Bivona is one of 23 million Americans navigating this difficult choice and decided to switch from a silver plan to a bronze one.
Silver plans generally come with lower deductibles and sometimes offer co-pays for visits. However, bronze plans have lower monthly costs but higher deductibles and less comprehensive coverage. Bivona realizes that with their new plan, they’ll have to pay for most medical expenses out-of-pocket until they hit an $18,000 deductible.
“I had no choice but to downgrade to a Bronze plan, which has an extremely high deductible,” she noted in an email. “We don’t go to the doctor often—maybe once a year—so we decided to take that risk.” But the uncertainty lingers; she worries about possible medical emergencies that could lead to financial distress.
“I just hope nothing happens that might put us in a dire situation,” she added.
Suman Bhattacharya, a 49-year-old independent writer and journalist from Philadelphia, encountered similar challenges during the recent health insurance enrollment period. He was so anxious about rising costs that he postponed checking his insurance options until it was nearly too late.
“Given the contentious nature of health insurance debates, I delayed looking at Pennsylvania’s exchange until right before the deadline,” Bhattacharya shared. “After talking with friends who are on ACA plans, we decided to check our prospective costs at the same time.”
The increase turned out to be steeper than he anticipated, about $200 for his gold tier plan, bringing his total to $1,124 per month. Fortunately, he managed to switch to a different gold plan that kept his monthly payments at around $934. Had he retained his previous coverage, he would have faced a significant financial strain.
“I’d have to manage that additional expense, which wouldn’t have been easy, especially since my income can vary,” he explained. “Given my medical situation and the necessity of maintaining coverage, I’d probably have to cut costs elsewhere, like dining out or buying groceries.” By 2025, health insurance was taking a major slice out of his income.
“Some months are tougher, and these fixed costs can end up consuming a third of what we earn,” he reflected. As things currently stand, it appears that healthcare expenses will keep climbing unless policymakers reach an agreement for an extension.
