Unveiling the Price Hikes in 2026 Obamacare Health Insurance Plans
TL/DR –
Prices for next year’s Obamacare health insurance plans are set to increase significantly, with most people who buy their own coverage not paying the full price due to tax credits from the Affordable Care Act. However, these new prices reflect what will happen if extra tax subsidies, first passed in 2021 and extended in 2022, expire at the end of the year. If these subsidies are not extended, it would cost the federal government around $23 billion next year and about $350 billion over the next decade, and many Americans could face much higher costs.
Obamacare Health Insurance Plans for 2026: Premiums Increase Substantially
As the new prices for Obamacare health insurance plans for the upcoming year are unveiled, a significant increase in premiums across the country is apparent. Additionally, these prices highlight what could happen if the additional tax subsidies from 2021 and 2022 expire at the end of this year.
Most individuals purchasing their own coverage receive some financial assistance from Affordable Care Act tax credits. If these tax subsidies expire, a significant number of Americans could face steep price increases before the midterm elections next fall, potentially even over a thousand dollars per month.
This funding issue is central to the ongoing congressional deadlock that has resulted in a government shutdown for almost a month now. As negotiations continue, the prices revealed this week paint a stark picture of how the expiration of these subsidies could impact Americans’ health insurance costs.
Impact of Subsidy Expiration: Varies by Income and Location
The effects of the subsidy expiration would be dependent on factors such as location, age, and income. Further complications could arise if Congress intervenes and alters the funding structure. In the meantime, the new prices give a realistic picture of what Americans might have to face.
For those with lower incomes, the expiration of subsidies could mean the end of free insurance. Currently, eligible individuals earning less than $24,000 a year don’t have to contribute toward their premiums, although co-payments and deductibles still apply.
Without the subsidies, a single person earning $22,000 would have to pay $66 a month for a standard plan. Approximately half of all Affordable Care Act marketplace enrollees will experience similar increases. These individuals usually reside in states that did not expand their Medicaid program.
Even though the price difference seems small, it could significantly impact people earning less than $2,000 a month. Data shows a tripling of sign-ups in this income group since the subsidies were established, with particularly large increases in certain states like Texas, Florida, and Georgia.
Higher Incomes, Higher Increases: How Age and Location Factor In
Individuals earning around $65,000 a year, particularly older ones, might have to brace for a steep hike in premiums. The cost of health insurance for this demographic could increase from a few hundred dollars to over $1,000 per month. Without the subsidies, these individuals would have to bear the full price set by insurers in their markets. These people are often self-employed or work for small businesses.
The amount people need to pay can also vary depending on where they live. Premiums are usually higher in rural areas, with states like Wyoming and West Virginia seeing particularly high rates. Without the subsidies, some people in expensive markets could see their premiums skyrocket. For example, a 60-year-old in southern Illinois could see their premiums rise from $460 to a staggering $2,800 a month.
Higher-income individuals, earning around $95,000, would also see a noticeable premium increase. Younger individuals in this bracket, however, might not be as affected as older ones since their income is more than 8.5% of the insurance cost, unless they reside in expensive markets.
Estimate Your Costs: Use a Calculator
Individuals can estimate their personal household costs, with or without subsidies, using this calculator provided by the health research group KFF.
About the Data
The data used in this analysis comes from the health research group KFF and is based on insurance premiums posted on healthcare.gov and state insurance marketplaces for the 2026 plan year. An earlier version of this article used estimated price increases for 2026, showing similar, though not identical, numbers.
The consumer costs are based on the ‘benchmark’ silver plan in each market, which covers approximately 70% of the average enrollee’s medical costs. The calculations only account for federal tax credits and do not include additional state subsidies available for some consumers in several states.
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