Health Care Costs Will Increase in 2026: How to Reduce Yours
While health insurance premiums — that is, the amount you pay each month for insurance — tend to rise modestly each year, 2026 will be bad for millions of Americans.
Whether you get your health insurance through your employer, the federal government or the Affordable Care Act marketplace, monthly premiums are expected to rise more than usual next year.
In particular, premiums for coverage in the ACA marketplace — aka Obamacare — are expected to increase significantly, because the advanced tax credits that keep costs down for many enrollees expire at the end of 2025. Several efforts to extend the credits have already failed, and Congress does not appear to be close to a deal despite the looming deadline.
The debate over Obamacare’s tax credits has been at the center of rising health care costs. Increasingly, Americans say they are tired.
According to a December poll from Gallup, only 16% of Americans say they are satisfied with the cost of health care in the US, marking the lowest reading in more than two decades. Meanwhile, a record 23% of respondents say the US health care system is “in critical condition,” with some saying it has “serious problems.”
Fortunately, there are a few (small) steps you can take to control your health care costs. Experts say now is the time to try to mitigate further damage.
“Don’t go into 2026 on autopilot,” Nicole Lamoureux, president of the National Association of Free & Charitable Clinics (NAFC) said in an email. “This is the year when proactively reviewing coverage options is especially important.”
Here’s a closer look at what to expect next year for the most popular health plans.
Affordable Care Act (Obamacare) programs
Since the start of the pandemic, the number of Americans enrolled in the Obamacare program has increased from 11 million to more than 24 million. Throughout this time, the programs have been largely funded by the federal government through tax credits, which have kept costs down for most enrollees.
At the end of the year, those pandemic-era tax credits are expected to expire. Fees will increase as a result.
According to KFF, a nonprofit health policy organization, about 92% of enrollees currently receive tax credits and face a 114% premium increase in 2026 after the credit expires. Average annual costs are estimated to increase from $888 to $1,904.
“In families that are already thin, the increase in this level does not increase,” said Lamoureux. “They are disturbing.”
When weighing your options in the market, he says it’s important to compare them carefully this year given the high prices from a dwindling number of suppliers.
“Look beyond monthly premiums,” added Lamoureux. “Factor in deductibles, out-of-pocket limits and provider networks.”
Workplace programs
About half of US workers — about 80 million people — get their health insurance through their employer, and this type of insurance is slated for unusual price increases next year, too.
Premiums will rise between 6.7% and 9% by 2026, according to the latest estimates. Employers attributed the increased costs to higher drug prices and increased cancer diagnosis and treatment.
According to KFF, employers usually pay between 75% and 85% of the cost of the program and pass the rest on to the employees. The remainder is usually deducted from premiums in the form of premiums. By 2026, employers plan to shift some of those costs to workers.
Higher premiums aren’t the only way companies can push additional costs on you, Lamoureux notes. A higher deductible is another trick, which requires you to pay higher out-of-pocket costs up front before your benefits kick in.
Many companies begin their annual health insurance enrollment periods in the fall for payments that begin at the beginning of the year. Now is the time to ask your company’s HR about what’s changing, he says.
Medicare
Traditional Medicare enrollees also face sticker shock. Part B health insurance premiums are expected to jump nearly 12% next year — to $206.50, according to the Centers for Medicare & Medicaid Services, or CMS. Part D prescription drug copayments may also increase.
Given that the open enrollment period for traditional Medicare ended on Dec. 7, it may be too late to make 2026 installation changes for some.
However, people enrolled in Medicare Advantage plans, which are private insurance plans that meet certain Medicare criteria, have a separate enrollment period where they can make changes starting Jan. 1 to Mar. 31. During this time, Medicare Advantage enrollees can switch to a different Medicare Advantage plan, switch back to traditional Medicare for drugs and/or add (or remove) coverage.
The three largest providers of Medicare Advantage plans are withdrawing their coverage by 2026, affecting an estimated 1.2 million Americans. Those affected should have received the Annual Change Notice in the mail by September 30.
Among the many changes, experts say it is important to rely on free and legal aid programs to make sense of it all. One key resource is State Health Insurance Assistance Programs, or SHIP. They are available nationwide and offer free advice to subscribers.
Medicare.gov also offers an easy-to-use comparison tool, and the 1-800-MEDICARE hotline is available to provide advice and problem-solving assistance as well.
Know your options
Given the scale of price increases coming to both public and private health insurance, it may be difficult to avoid high premiums. Reducing is the name of the game.
Ask questions now. Seek help early. And, as KFF President Drew Altman argued in a recent column, don’t expect any eleventh-hour relief from a hyperpartisan Congress.
As 2026 approaches, Lamoureux (with NAFC) says free clinics across the country are preparing for an influx of new patients, as rising costs could lead to more people losing health insurance.
If you eventually lose health coverage, NAFC offers a search tool that allows you to look for clinics that offer free or low-cost care by ZIP code.
“Early care is always better in terms of health outcomes and costs,” he says.
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