Concerns Over Rising Healthcare Costs

At a time when affordability is making headlines, many Americans are increasingly worried about rising healthcare costs. This concern is particularly acute for those unsure of how they will manage their premiums once the expanded subsidies under the Affordable Care Act come to a close.

However, they’re not the only ones facing this issue.

Stephanie See has more on this topic.

Rising Financial Strain

A recent report from the West Health Gallup Center highlighted that around one-third of Americans are making tough choices, such as skipping meals, reducing their driving, and accruing more debt just to cover healthcare expenses. The study involved 20,000 adults.

The burden of high costs is especially heavy for the uninsured, a group that has been growing since the expanded Affordable Care Act subsidies expired for many last year. We spoke with several Americans enrolled in Obamacare about their current situations as they confront rising premiums and diminishing support.

Personal Experiences

Brian Lantier, New York resident: “I’m Brian Lantier. I live in New York.”

Micheline Pierret Berry, California resident: “My name is Micheline Pierret Berry. I live in Santa Monica, California.”

Brian Lantier: “I believe that my premium expired around December—it was December 15th, if I recall. I didn’t renew it for 2026, though that was the deadline.”

Micheline Pierret Berry: “Previously, I had a Silver plan costing about $236 a month. This year, though, the same plan is asking for $360 per person.”

Brian Lantier: “Yeah, my premium skyrocketed from $390 a month, after tax credits, to the $770 I was quoted. I mean, having insurance does bring some peace of mind. Though, I realize I’m fortunate—at 54, I don’t smoke, my BMI is normal, and I have no chronic health issues. I can make these decisions, but I know that a lot of folks aren’t in my position.”

Micheline Pierret Berry: “As a cancer survivor, I owe a lot to the ACA. It provided me with excellent care during my diagnosis and follow-ups.”

Brian Lantier: “I consider myself relatively healthy and without chronic ailments, so I’m not too impacted. I don’t have prescriptions to worry about, either. Still, I’ve seen how costly healthcare can be; my mother spent over three months in the hospital on multiple occasions towards the end of her life.”

Micheline Pierret Berry: “Sadly, the care available to the uninsured is quite poor. Even if it means borrowing money, I have to stick with my plan—it’s literally a matter of life and death.”

Brian Lantier: “If anything happens, I plan to pay out of pocket. I’m thinking about getting my own insurance.”

Micheline Pierret Berry: “I hope that with enough advocacy and legislation, the conversation surrounding health care subsidies will shift from being political to fundamentally about human care—something this administration and future ones need to address.”

Broad Impacts of Rising Costs

Numerous polls indicate that increasing healthcare costs are affecting not just those with government-assisted health care, but also individuals covered through employer-sponsored plans. This comes amid recent cuts to various programs. While the president has made strides in lowering prescription drug costs, these reductions are not as extensive as suggested.

To gain further insights, we consulted Larry Levitt, executive vice president of health policy at KFF.

“Thanks for joining us, Larry,” Stephanie See stated.

“It’s been several months since over 2 million Americans were expected to lose these enhanced ACA subsidies. A report from the Wall Street Journal mentioned that 14 percent of ACA enrollees didn’t make their January payments. What can you tell us about this population, and how is it affecting their health?”

Understanding the Consequences

Larry Levitt: “As illustrated by your interviewees, many people are being forced into difficult decisions. With those enhanced premium subsidies ending, approximately 1 million fewer individuals have insurance. Furthermore, as you pointed out, new data shows that among the enrollees, a significant portion failed to pay their premiums after receiving their January bills. Polling indicates rising costs are a common concern, particularly among ACA enrollees, who are often having to cut back on other household expenses or even go uninsured.”

Stephanie See: “The Republican-led Congress hasn’t taken action to reinstate these subsidies. What does this mean for the future?”

Larry Levitt: “I expect we’ll see another year where people face high out-of-pocket premiums due to the expired subsidies. In theory, Congress could potentially revisit and extend these subsidies retroactively, but currently, there’s a lot of disagreement between Democrats and Republicans regarding this matter.”

Stephanie See: “Can you elaborate on how this connects with the extension of ACA subsidies?”

Larry Levitt: “Primarily, these subsidies aid low- and moderate-income individuals who either benefit from ACA subsidies or depend on Medicaid. The ‘One Big Beautiful Bill’ passed last year cut Medicaid funding by nearly $1 trillion over a decade—marking the largest reduction in federal healthcare support in history. Though many of these cuts won’t take effect for some time, new work requirements begin in January, which could leave millions uninsured if they fail to meet those criteria.”

Stephanie See: “Healthcare costs are increasing across the board—be it through Medicaid, an ACA plan, or employer-provided insurance. You mentioned KFF has examined this; is this a pivotal moment that could leave countless Americans without coverage?”

Larry Levitt: “It’s tough to declare we’re at a breaking point. Time has seen presidents from Nixon to Obama express concerns about the unsustainability of healthcare costs. With current costs far surpassing those in earlier decades, healthcare remains a top worry for financial security among the public. And while the debate often centers on Medicaid and Obamacare, we cannot forget the 160 million people insured through their employers, who are also feeling the pinch—especially when it comes to rising premiums.”

Stephanie See: “And it’s not limited to medicines, we’re also dealing with the costs of hospital treatments. There seems to be a blame game happening among various players in the healthcare system. How can we actually find a solution?”

Larry Levitt: “There’s definitely shared responsibility here. Prescription costs in the U.S. are significantly higher than in other countries, despite drugs making up a relatively small fraction of total healthcare spending. The main drivers of rising healthcare costs are hospital expenses, which account for a big portion of recent increases. At the same time, insurance companies hold some blame as they take a cut from each premium dollar, and it seems scrutiny of their practices will intensify. Ultimately, we spend way more on healthcare than other high-income nations, but we see poorer outcomes. Access isn’t universal, which only adds to our unique position in the global healthcare landscape.”

“Thank you, Larry, for sharing your insights,” Stephanie concluded.

Larry Levitt: “Thanks for having me.”