Health insurance premiums are climbing in 2026, with employees facing an average 7% increase. Those with plans through the Health Insurance Marketplace could see hikes up to 30%.
Several factors are contributing to this trend. Employers may be opting for more expensive plans through brokers. Inflation is driving up the cost of medical care and prescription drugs, including widely-used obesity and diabetes medications. Additionally, the expiration of Affordable Care Act subsidies in 2025 has increased marketplace plan costs.
For those struggling with rising premiums, several options exist. Engage with your company's HR and CFO departments to explore potential solutions for employer-sponsored plans. While switching employers is an option, similar cost increases are widespread. In specific circumstances, individuals with lower incomes may qualify for Medicaid, though eligibility requirements are stringent. Furthermore, explore "charity care" or financial assistance policies offered by nonprofit hospital systems, which can significantly reduce out-of-pocket medical expenses, even for those with insurance.