Rising Health Insurance Premiums Affecting Young New Yorkers
Eileen Tyrrell faced a shocking reality in December when she logged into the New York State Health Insurance Marketplace. Her monthly premium had skyrocketed from around $147 to an astounding $849.
“It was really a jarring moment,” said the 26-year-old bookstore manager in Brooklyn, whose income was about $53,000 in 2025. She anticipates earning around $72,000 in 2026 through her bookstore job and TikTok content creation.
Last year, Tyrrell benefitted from a federal premium tax credit that brought her monthly costs down to $147, despite her Bronze plan costing approximately $510. But due to her increased income, alongside rising basic premiums and the end of temporary pandemic-era subsidies, her costs could soon rise dramatically.
The enhanced subsidies, which were broadened by the American Rescue Plan Act in 2021, had lifted income limits for financial aid and capped premiums at 8.5% of household income, thereby making it easier for more middle-income Americans to qualify for help.
However, these provisions won’t extend beyond 2025. While the premium tax credit still exists, it’s restricted to households earning up to 400% of the federal poverty level—$62,600 for a single person in 2025. This cutoff, which was temporarily waived, affects people like Tyrrell, whose projected income in 2026 is roughly 460% of the federal poverty level, according to standards from KFF, a nonpartisan health policy research group.
The broader picture is concerning. Recent statistics indicate that about 1 in 10 people enrolled in the ACA Marketplace last year are now uninsured. For those sticking with their current plans, costs are escalating quickly. An analysis from KFF predicted that premium payments could more than double for participants who maintain the same plan when the enhanced tax credits lapse.
Cynthia Luna, a certified financial planner in Texas, pointed out that “the loss of ACA subsidies will devastate the already tight budgets of many just starting out.”
“People will have to make tougher decisions,” she remarked. “Do I spend on food or medicine? Health insurance or savings?”
Around 24 million individuals signed up for ACA Marketplace plans in 2026. The Congressional Budget Office estimates that about 2.2 million people may end up uninsured by 2026 if subsidies don’t return, as many may lose their coverage due to rising costs.
State-Level Savings Efforts
Attempts to reinstate the enhanced federal ACA premium subsidies have stalled in Congress, leaving little clarity in the Senate after negotiations failed. Some states, like New Mexico, California, and Maryland, have introduced their own subsidies to ease some of the financial burden, according to KFF.
However, in most states—including New York where Tyrrell resides—middle-income individuals risk losing all their enhanced federal assistance. KFF’s ACA Marketplace Calculator shows that single residents in New York earning around $62,600 or more are no longer eligible for help. To simply afford basic needs in Manhattan, a single adult without children would need an income of about $79,469 annually before taxes, as per the MIT Living Wage Calculator.
The impact of these changes is being felt in household budgets. Luna noted some individuals have had to reduce discretionary spending, while others have even trimmed essential expenses or dropped coverage entirely as costs climb.
“It feels frustrating because when people start earning a bit more, they often lose access to the very support that might have helped them,” Tyrrell expressed.
To cope with the steep premium on her Bronze plan, Tyrrell opted for a $257 per month catastrophic plan instead. Yet, this decision comes with risks; her new plan has a hefty $12,000 deductible, which means she must cover the first $12,000 out of pocket before most benefits kick in.
“Health care expenses are tricky to manage,” Tyrrell noted. “You can’t really just set a limit on what you’ll spend each month for medical needs.”
