In the United States, health insurance is part of the public debate ahead of 2026. According to the Peterson-KFF Health System Tracker, the prices of plans under the Affordable Care Act will rise exponentially compared to the last ten years due to inflation. Jessica Altman of Covered California emphasizes that the expiration date of enhanced premium tax credits (EPTC) will affect many citizens. On the other hand, Mercer states that employers will have to deal with the situation. Read on to learn more.
How much will health insurance premiums increase in the United States in 2026?
According to the Peterson-KFF Health System Tracker, an online center that monitors the functioning of the US healthcare system, health insurers submit annual rate reports to state regulators, detailing expectations and changes in the costs of plans regulated by the Affordable Care Act (ACA).
This is a plan with a relatively small but growing percentage of the population enrolled, compared to the number of employer plans, the organization warns.
The analysis of the reports, prepared by Peterson-KFF, revealed that for next year, 312 insurers participating in the ACA Marketplaces in all 50 states and the District of Columbia will have an average premium increase of 18%, which is approximately 11 percentage points higher than last year.
“This is the largest rate change insurers have requested since 2018, the last time policy uncertainty contributed to sharp premium increases,” it explains. It adds that premium changes range from -10% to 59%.
Significantly higher insurance costs and potential losses
For its part, Covered California noted that more than 24 million Americans enrolled in the Health Insurance Marketplaces have come to rely on greater affordability thanks to enhanced premium tax credits (EPTCs), which are set to expire at the end of 2025.
“If Congress does not take action by September 30, it is estimated that the loss of EPTCs will cause 4.2 million Americans to lose their health insurance,” the organization warned.
Jessica Altman, executive director of Covered California, commented, “Skyrocketing health insurance premiums are the last thing Americans need right now.”
Employers and the largest increase in the cost of health benefits
The National Survey of Employer-Sponsored Health Plans by Mercer, a company that primarily offers human resources consulting and financial services, predicts that the total cost of health benefits per employee will increase by an average of 6.5% in 2026, the largest increase since 2010.
“Employers estimated that the cost of the plan would increase by almost 9% on average if they did not take measures to reduce it,” it notes. According to projections, 2026 will be the fourth consecutive year of increases in health benefit prices, following a decade of moderate annual increases averaging only 3%.
“The sustained growth is due both to price increases”
The sustained growth is due both to price increases (new expensive treatments, consolidation of providers, inflation, healthcare sector wages) and to increased use of services (care postponed due to the pandemic, expansion of virtual care).
The survey found that in 2026, 59% of employers plan to make changes to their health plans to contain costs, mainly through higher deductibles and cost sharing. As a result, employees will face an increase in their premiums, estimated at between 6% and 7%, in addition to potentially higher out-of-pocket expenses when receiving medical care.
Millions of Americans could face higher health insurance rates
Enrollment in ACA plans has surged to a record 24 million people in large part due to the billions of dollars in subsidies that have lowered costs for many people. The expanded subsidies allowed some lower income enrollees to access health plans with no premiums and capped the amount higher earners pay for premiums to 8.5% of their income. It also expanded eligibility for middle-class earners.
With expiration now just a few months away, some of those people have already gotten notices that their premiums — the monthly fee paid for insurance coverage — are poised to spike next year. Insurers have sent out notices in nearly every state, with some proposing premium increases of as much as 50 percent.
Lawmakers are facing pressure to act from some of the country’s biggest industries, including the insurers that cover people on the marketplace and hospital executives who say they’re already going to be squeezed by the Medicaid cuts in President Donald Trump’s “big, beautiful” tax bill.
