Health Insurance Price Hikes: Strategies for Consumers
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Published August 20, 2025
Millions of Americans who purchase health insurance on their own-outside of employer-sponsored plans-are bracing for potential price increases in the coming year. This shift is directly linked to the impending expiration of enhanced federal tax credits that were implemented during the COVID-19 pandemic. These credits, authorized by Congress, significantly lowered monthly premiums for many individuals and families.
The temporary tax credits are scheduled to expire in December of this year, meaning that starting in 2026, many policyholders will no longer receive the same level of financial assistance. This is expected to result in considerable premium increases for a meaningful portion of the individual health insurance market.
A Look Back: The Pandemic-Era Tax Credits
In response to the economic disruption caused by the COVID-19 pandemic, Congress passed legislation that temporarily expanded the availability and affordability of health insurance through the Affordable Care Act (ACA) marketplaces. These enhancements included increased premium tax credits, making coverage more accessible to a wider range of income levels. for many, these credits meant the difference between being able to afford health insurance and going without.
Who Will Be Affected?
the primary impact will be felt by those who do not qualify for employer-sponsored health insurance and purchase plans through the ACA marketplaces. This includes self-employed individuals,freelancers,early retirees,and those whose employers do not offer health benefits. Individuals with incomes between 100% and 400% of the federal poverty level were particularly likely to benefit from the expiring credits.
The exact amount of the premium increase will vary depending on factors such as income, age, location, and the specific health plan chosen. However,experts predict that many individuals could see their monthly premiums rise by hundreds of dollars.
What Can You Do?
While the expiration of the tax credits presents a challenge, there are steps you can take to mitigate the impact:
- Shop Around: Carefully compare plans available in your area during the next open enrollment period.
- Explore Cost-Sharing Reduction Options: If you qualify, cost-sharing reductions can lower your out-of-pocket expenses, such as deductibles and copayments.
- Check for State-Specific programs: Some states offer additional financial assistance to help residents afford health insurance. Resources like WebMD can help you find state-specific information.
- Consider a different Plan: Evaluate whether a different plan type (e.g., a high-deductible health plan) might be a more cost-effective option for your needs.
Resources for Further Information
- MedlinePlus: Thorough health information from the national Library of Medicine.
- All For Health: Information and resources related to health and wellness.