Get Ready to Pay Even More for Health Insurance in 2026

Costs could soon rise for millions more households. The fact that some subscribers have already received advance notice of rate increases through 2026 adds to the annoyance of those who believe their alternatives for cheaper insurance are running out.

There may be big changes coming if you're one of the approximately 24 million Americans who buy a plan through the Affordable Care Act marketplace. If the improved ACA premium tax credits expire at the end of 2025, the average family premium could increase by 114%, from $888 in 2025 to $1,904 in 2026, according to KFF. Congress must take steps to aim for the continued existence of these improved tax benefits.

Rising expenses affect everyone, even those with employer-sponsored insurance. According to surveys, employer-sponsored health insurance rates are expected to increase by 6% to 9% in 2026, marking the largest rise in over 15 years. Employers are passing on more of these costs to employees by increasing out-of-pocket requirements and payroll deductions. Additionally, according to recent estimates, the cost of health insurance is rising faster than wages, which is straining many households.

Why Are Prices Increasing?

Professionals identify a number of interrelated aspects that affect pricing:

- The return of medical visits postponed during the pandemic

- The United States' elderly population necessitates greater continuous care.

- Chronic illnesses, including diabetes and heart disease, are still common.

- Costs are rising due to pressure on the healthcare staff.

- Prices usually go higher when there is a greater demand for medical treatment and there is still a shortage of workers.

Different regions have different levels of competition in the marketplace; some have multiple insurer options, while others have less participation. Pricing is passed on to customers differently depending on the market structure.

Activities During Open Enrollment

1. Examine how much you spend on healthcare. A high-deductible health plan combined with a health savings account may result in reduced monthly premiums and tax benefits if you typically need few medical services.

2. Anticipating more medical requirements?  If you expect significant medical care, plans with higher premiums and lower deductibles can help stabilize costs.

3. Examine additional possibilities for coverage. Depending on eligibility, Medicaid, CHIP (for children), or catastrophic coverage might be offered if the cost of employer premiums or the Affordable Care Act becomes too high.

4. Remain adaptable until the due date. You can change plans at any point before the end of open enrollment if something changes, including as the laws governing subsidies.

The More Comprehensive View

The budgeting process for households is increasingly centered on healthcare decisions. Families' planning for both short-term expenses and long-term financial objectives is impacted by rising costs.

At The Retirement Group, we help individuals assess strategies that align with their retirement objectives and healthcare needs. To discuss various plan options and tax-advantaged techniques as you get ready for the next enrollment session, give a financial professional a call at (800) 900-5867.

Do you need assistance comprehending your options?

Selecting a health plan affects more than just the upcoming year; it may also impact your retirement income requirements. Before changes take effect, open enrollment is an excellent opportunity to reassess your healthcare strategy.

You don't have to handle this by yourself. Before deadlines come around, the Retirement Group can help you assess your retirement and health care plan. Give (800) 900-5867 a call now.