Health Insurance Price Increases Coming for Some Consumers
- Millions of Americans who purchase health insurance on their own-outside of employer-sponsored plans-are bracing for possibly important premium increases next year.
- The expiring tax credits were a key component of the American Rescue Plan, designed to mitigate the economic fallout of the pandemic.
- The tax credits in question are designed to make health insurance more affordable based on income.
Health Insurance Costs Set too Rise in 2026: What You Need to Know
Table of Contents
Published August 21,2025
Millions of Americans who purchase health insurance on their own-outside of employer-sponsored plans-are bracing for possibly important premium increases next year. this change stems from the scheduled expiration of enhanced federal tax credits in December. These credits, initially expanded by Congress during the COVID-19 pandemic, have been instrumental in making health insurance more affordable for many individuals and families.
The expiring tax credits were a key component of the American Rescue Plan, designed to mitigate the economic fallout of the pandemic. They substantially lowered monthly premiums for those purchasing plans through the Health Insurance Marketplace, often resulting in savings of hundreds of dollars per month. Without their continuation, many will face a ample financial burden when renewing or selecting new plans for 2026.
Understanding the Tax Credits
The tax credits in question are designed to make health insurance more affordable based on income. They work by reducing the monthly premium you pay for a health insurance plan purchased through the Health Insurance Marketplace. The amount of the credit varies depending on your income and the cost of the benchmark plan in your area. During the pandemic, these credits were expanded to cover a larger range of incomes, making coverage accessible to more people.
Currently, individuals with incomes up to 400% of the federal poverty level are eligible for premium tax credits. The expiration of the enhanced credits will disproportionately affect those in this income bracket who have relied on the increased assistance to afford coverage.
Who Will Be Most Affected?
The impact of these expiring credits will not be uniform. Individuals and families with moderate incomes-those who don’t qualify for Medicaid but still struggle to afford unsubsidized premiums-will likely experience the most significant increases. Those who received substantial tax credits under the American Rescue Plan could see their monthly premiums double or even triple.
Here’s a breakdown of potential impacts:
| Income Level | Potential Impact |
|---|---|
| Below 100% of the Federal Poverty Level | Likely eligible for Medicaid; minimal impact. St. John’s Community Health offers services for those with limited income. |
| 100% – 400% of the federal Poverty Level | Significant premium increases expected. |
| Above 400% of the Federal Poverty Level | Moderate premium increases expected. |
What Can You Do?
While the expiration of the tax credits presents a challenge, several options are available:
- Shop Around: Compare plans carefully during open enrollment. The PIH Health website can help you find a doctor and understand your options.
- Explore Cost-Sharing Reduction Plans: If you qualify, these plans can lower your out-of-pocket costs, such as deductibles and copayments.
- Check for State-Specific Programs: Some states offer additional financial assistance for health insurance.
- Consider a Catastrophic Plan: These plans have lower premiums but higher deductibles and are generally suitable for younger, healthier individuals.
It’s crucial to review your options carefully during the upcoming open enrollment period to find the most affordable and complete coverage for your needs.
Resources for Further Information
For more information on health insurance options and financial assistance, consider these resources:
- MedlinePlus: Comprehensive health information from the National Library of Medicine.
- The Health Insurance Marketplace: https://www.healthcare.gov/
- Your state’s Department of Insurance.