Major Price Hikes Are Coming for ACA and Employer Plans
Americans should prepare for a significant health insurance cost increase in 2026. Analysts warn of rising premiums and reduced affordability across both ACA and employer plans.
A recent Peterson-KFF Health Tracker report shows a 15% median increase in ACA plan premiums. This marks the largest price jump since 2018.
Working Americans Also Face Higher Costs
Even people with employer-sponsored insurance aren’t exempt. A report from Mercer shows:
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Over 50% of large employers plan to shift more costs to workers
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This will come through higher deductibles, copays, and out-of-pocket limits
Beth Umland, Mercer’s research director, says employers are being forced to react to inflation and rising medical costs.
“Many companies are now more willing to shift expenses to employees than in past years.”
Why Health Costs Are Rising in 2026
The expiration of COVID-era tax credits, rising medical costs, and new federal policy changes are driving prices higher. Key reasons include:
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Medical inflation and costlier treatments
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End of ACA subsidies that lowered premiums
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Tariffs on medical device imports
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Regulatory changes under recent Trump-era tax law
Matt McGough of KFF explains that the law introduced uncertainty for insurers.
“Insurers weren’t sure how to price their plans going forward,” he said.
Medicaid Changes Will Also Impact ACA Enrollment
New work and volunteer requirements will lead to millions losing Medicaid eligibility. Other major changes include:
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Ending year-round ACA sign-ups for low-income groups
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Stopping automatic plan renewals
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Requiring annual updates of income and personal info
These changes could remove many people from ACA coverage—especially low-income families who benefited from simplified enrollment.
End of Tax Credits Will Push Premiums Higher
Biden-era subsidies helped lower monthly premiums for millions. Now, those credits will expire. The Congressional Budget Office estimates that:
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Up to 5 million people could lose ACA coverage
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Out-of-pocket costs will rise by over 75% on average
KFF warns that healthy individuals may drop out, leaving insurers with sicker patients who need more care—further driving prices up.
What Employers Are Doing to Offset Their Costs
Employers also expect their healthcare costs to rise by 6% or more in 2025 and 2026. To manage this, companies are:
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Raising deductibles and employee cost-sharing
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Offering “narrow network” plans with fewer providers
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Encouraging use of in-network services with negotiated discounts
Earlier in the decade, labor shortages made companies hesitant to raise healthcare costs. But that trend is shifting fast.
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Approval Process Still Pending
Before these premium increases become official, state and federal regulators must review and approve insurer filings. However, most proposed increases fall in the 10% to 28% range.
Once finalized, these new rates will take effect during the fall 2025 open enrollment period.
Conclusion: Prepare Now for the Health Insurance Cost Increase 2026
The health insurance cost increase 2026 will impact millions of Americans—whether they get coverage from the ACA or through work. With tax credits ending and employer contributions shrinking, families must prepare for higher monthly bills and fewer coverage protections.