Why Health Insurance Premiums Are Rising – and What You Can Do About Them

Editor’s Note: This story originally appeared on Penny Hoarder.

Are you paying more for insurance in 2026?

You are not alone. Workers nationwide had their health insurance premiums increase 7% on average, according to research by investment firm Mercer.

And the Kaiser Family Foundation found that those with plans through the Health Insurance Marketplace typically face the highest increases, up to 30%.

This article will explain why this happens and what you can do about it.

Why have my health insurance premiums increased?

The 2026 premium increase is in some ways a continuation of various factors.

First, your employer may have purchased their health insurance plan through a reseller instead of from an insurance company. Brokers, who show off their expertise, are paid a commission and can be incentivized to sell more expensive plans to your employer.

But retailers are only one part of the problem. Inflation drives up the cost of everything, including medical care – data from the Bureau of Labor Statistics’ Consumer Price Index shows that medical costs will grow faster than the average inflation rate by 2025.

Prescription drug use has increased, too, which can cause premiums to rise. For example, many employer-sponsored programs include GLP-1 for obesity. Diabetes drugs, cancer drugs, genetics and more increase costs.

Affordable Care Act funding expired in 2025, raising the cost of plans offered in the marketplace. The subsidies, which are tax credits, help reduce the monthly costs of insurance plans offered through the ACA.

What are my options?

If you’re struggling to make the math work with higher premiums, there are a few steps you can take to try to remedy the situation.

1. Talk to your company

If you’re in an employer-sponsored plan, explaining a bad situation to those who have the power to change it can, if you’re lucky, turn the wheels on a solution.

“Go to HR and CFO – not just HR,” said David Contorno, founder and CEO of E Powered Benefits. “We go to HR for these things all the time, but they don’t have financial information about the health plan. They just look at the human impact. But if enough people go to the CFO, hopefully they’ll start looking at other solutions.”

This is what Contorno’s company, E Powered Benefits, is trying to help with. It works with employers — such as those facing affordability issues — to put together employer-sponsored health insurance plans that are still compliant, but less traditional and less expensive.

2. Change employers

If costs are not changing at your current employer, you may want to consider switching. However, you may face similar affordability issues. Employer-sponsored health insurance premium spikes are a widespread problem in 2026 — not one unique to your particular employer.

But buying through a workplace and health insurance is still an option – it’s almost impossible to find a silver bullet.

3. Medicaid may be an option in selected cases

Medicaid is a joint state and federal program for low-income people. There are many eligibility requirements, including your adjusted gross income (MAGI) and being a US citizen or a qualified non-citizen.

Medicaid laws vary by state, and there are 10 states that did not opt ​​for Medicaid expansion. Depending on where you live, you may be able to enroll in Medicaid rather than accepting an offer from your employer’s health insurance plan.

“There’s a minimum threshold at which you can qualify for Medicaid, whether or not you’re covered by employer insurance,” Contorno said. “But it’s the lowest federal poverty level. The reality is if you make more than the federal minimum wage, you probably won’t qualify for that law.”

4. Use the opportunity to care for the needy

Premiums aren’t the only way you pay for health insurance. There are co-pays, deductibles and other out-of-pocket costs throughout the year. If you have health insurance, you may be surprised to learn that you may be eligible for a hospital system financial assistance policy (FAP).

The ACA requires nonprofit hospital systems to implement these programs, also known as charity care. Depending on your location and the size of your family, income limits can reach six figures.

And you can use them even if you have insurance. In some cases, they can clear your debt to $0. If you can’t find information about your hospital system’s FAP online, call the billing department and ask for the information directly.

In some cases, you may be able to negotiate medical bills that you can afford, even if you don’t directly qualify for charity care, so reach out to your provider to ask.