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More than 24 million Americans will see a 75 percent increase in health insurance premiums in 2026 unless Congress acts. By: Alexander Grey on Unsplash
Unless Congress intervenes, premiums for Affordable Care Act (ACA) Marketplace health insurance will jump to their highest levels in years. Monthly out-of-pocket expenses for subsidized enrollees are expected to rise by an average of around 75 percent in 2026 β and thatβs in addition to base premium increases proposed by insurers.
Itβs up to Congress
Congress has until the end of 2025 to extend enhanced subsidies from 2021 to keep costs down for constituents. By: Elijah Mears on Unsplash
When federal lawmakers passed a budget reconciliation law earlier this year, they didnβt renew the pandemic relief enhanced premium tax credits that were enacted in 2021. So unless Congress decides to extend those subsidies in the coming months, the tax credits will disappear at the end of 2025 for the more than 24 million Americans who are insured through the ACA Marketplace, which many still informally call Obamacare.
Whatβs fueling the hikes
Rising medical costs for hospital services, doctor visits and prescription drugs are fueling the surge in premiums. By: Jonathan Borba on Unsplash
Even if Congress takes action, widespread premium increases are still likely, Fortune reported. Insurers report that rising drug prices and medical inflation β currently around 8 to 10 percent annually β are key drivers. The outlet also noted that possible tariffs on medical supplies and pharmaceuticals could raise premiums by an additional 3 percent.
Rising costs for everyone
Premiums are expected to go up for those insured on the ACA Marketplace as well as for people who are privately insured. By: Raj Tuladhar on Unsplash
Rising premiums will affect more than just those enrolled in the ACA Marketplace. Privately insured individuals are also expected to see higher costs. According to Fortune, 51 percent of businesses plan to pass along premium increases to their employees. A recent review of 2026 rate filings by Peterson-KFFβs Health System Tracker shows that marketplace insurers are proposing a median premium increase of 18 percent. Among 312 insurers analyzed, most are requesting hikes between 12 percent and 27 percent, with more than 125 aiming for increases of 20 percent or higher β the steepest jump since 2018.
Widespread support for a subsidies extension
Experts believe the chance of subsidies being renewed is slim without bipartisan compromise or President Donald Trumpβs support. By: Win McNamee β Pool via CNP / MEGA
A June 2025 KFF poll found that nearly 77 percent of Americans support extending the enhanced premium subsidies for marketplace enrollees β including a majority of Republican and MAGA-leaning voters. However, the GOP remains opposed to major new spending, Fortune reported, with some lawmakers likening the funding to insurance company bailouts. Analysts see the chances of an extension as low without a major change in political priorities or support from President Donald Trump.
The post Millions facing 75% health insurance premium surge appeared first on Knewz.
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