Millions of Americans who rely on the Affordable Care Act for health insurance are expected to face an average premium increase of 15% in 2026. This rise is largely driven by the expiration of COVID-19-related subsidies, along with ongoing healthcare cost inflation and changes in enrollment patterns.

Why Millions of Americans Could See Their Health Insurance Rates Rise

Millions of Americans who rely on the Affordable Care Act (ACA) for health insurance coverage may face significant premium increases in 2026. Various factors, including the expiration of COVID-19-related subsidies, are driving these anticipated cost hikes.

Rising Premiums Expected in 2026

According to a report by the Kaiser Family Foundation (KFF), a national health information nonprofit, ACA premiums are projected to increase by an average of 15% next year. This rise represents a substantial financial challenge for many Americans who depend on ACA marketplace plans to secure their healthcare coverage.

Impact of COVID-Era Subsidies Ending

One of the primary reasons for the premium increase is the expiration of COVID-era subsidies. These subsidies were introduced as part of pandemic relief efforts to help individuals and families afford health insurance during a time of economic uncertainty. With these subsidies set to expire, many enrollees will lose critical financial assistance, leading to higher out-of-pocket costs and insurance premiums.

Other Contributing Factors

• Healthcare Cost Inflation: Medical costs continue to rise, driven by factors such as increased prices for hospital services, prescription drugs, and medical equipment.
• Changes in Enrollment Patterns: Shifts in the demographics and health status of those enrolling in ACA plans can influence risk pools and premiums.
• Policy Adjustments: Modifications to ACA regulations and state-level decisions may also impact premium rates.

KFF’s Role and Insights

The Kaiser Family Foundation plays a vital role in analyzing and disseminating information about health policy issues, including the ACA. Cynthia Cox, vice president and director of KFF’s Program on the ACA, has provided expert commentary on the premium increases. Her insights help clarify the complex factors behind the rising costs and what they mean for consumers.

What This Means for Consumers

For millions of Americans enrolled in ACA marketplace plans, the projected premium increases could result in higher monthly payments and overall healthcare expenses. Consumers may need to reassess their coverage options during the upcoming enrollment period, considering factors such as plan benefits, provider networks, and total costs.

Additionally, policymakers and advocacy groups may need to explore solutions to mitigate the financial impact on vulnerable populations, especially those who benefited from the now-expiring COVID-era subsidies.

Looking Ahead

As 2026 approaches, monitoring changes in ACA premiums and subsidy policies will be crucial for both consumers and stakeholders. Continued analysis by organizations like KFF will provide valuable guidance and transparency in navigating the evolving health insurance landscape.