Millions of Americans who buy their own health insurance through the Affordable Care Act (ACA), also known as Obamacare, are likely to face steep price increases next year. Several major insurers are requesting double-digit premium hikes for 2026, citing rising healthcare costs and changes in federal policy.
According to filings reviewed by the health policy nonprofit KFF for The Wall Street Journal, companies like Blue Cross & Blue Shield of Illinois are seeking a 27% increase in premiums, while its Texas branch is requesting a 21% rise. Similar rate hikes are being proposed in other states, including Washington, Georgia, and Rhode Island, where some insurers are asking for increases of more than 20%.
Health insurers say they need the higher rates because medical costs are going up, and federal subsidies that help people pay for coverage are set to decrease at the end of 2025. Congress had expanded these subsidies in 2021, but those enhanced payments will expire in December.
“This is going to be a double hit for some families,” said Cynthia Cox, a vice president at KFF. “They’ll face both higher monthly premiums and reduced financial support from the government.”
About 24 million Americans currently use ACA plans to get health coverage. For many, the sharp rise in premiums could make healthcare less affordable, especially as the mix of healthy and sick enrollees in these plans changes.
Some insurers also said that new tariffs could increase the cost of drugs and medical supplies, adding more pressure to raise premiums.
Beyond the ACA market, health insurance companies are struggling in other areas too. Big firms like UnitedHealth Group, Centene, and Molina Healthcare have reported financial difficulties due to higher-than-expected healthcare costs. Many investors are losing confidence in the insurance sector as pricing predictions become more difficult in the post-pandemic environment.
The issue has larger implications for the U.S. economy. While the Consumer Price Index (CPI) and the Personal Consumption Expenditures (PCE) price index—both used to measure inflation—will capture some of the rising costs, much of the financial burden is carried by employers, Medicare, and Medicaid. This means official inflation numbers may not fully reflect the real impact on household budgets.
Healthcare experts warn that surging medical costs are outpacing what the government is willing to pay, leaving consumers to absorb more of the expense.
