New data from KFF shows that insurers in the Affordable Care Act marketplace are requesting a median increase of 15% in premiums for 2026.
KFF states that data from 105 insurers submitted in 19 states and the District of Columbia indicates that the potential rate increases in 2026 would mark the largest price hike since 2018.
There are several factors contributing to price increases, KFF said.
"Insurers have cited several policy changes that they expect to drive up rates next year, including the expiration of the enhanced premium tax credits at the end of this year and the impact of tariffs on some drugs, medical equipment, and supplies," KFF said.
This data comes as Mercer released its Survey on Health and Benefit Strategies for 2026 on Tuesday, revealing that many companies will reduce their employees' health care benefits to address rapidly growing costs.
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The survey found that 51% of large employers plan to shift more health care costs to workers in 2026, up from 45% last year. These changes could include raising deductibles or out-of-pocket maximums, according to Mercer. Employers expect their health care costs to rise by 6% in 2026, which will result in passing those expenditures onto their staff.
According to the American Medical Association, Americans spent $14,570 per person on health care costs in 2023. The AMA estimates that 31.2% of health care costs were tied to hospital care, while 16.5% was spent on personal health care. According to KFF, even when adjusted for inflation, health care costs have risen considerably over the years. Using 2023 dollars, the average person spent about $11,310 on health care in 2013 and $7,908 in 2000.
The marketplace offers government-subsidized health care for households with incomes between 100% and 400% of the federal poverty level. The Biden administration previously stated that approximately 80% of consumers have found plans through the marketplace for less than $10 a month. The Affordable Care Act was passed in 2010 during the Obama administration.
Earlier this week, a group of state attorneys general sued the Trump administration over changes to the marketplace that they say would cause 1.8 million people to lose their health insurance. The attorneys general argue that the changes would create "new verification requirements, impose an automatic monthly charge on all automatically reenrolled consumers who qualify for $0 premiums, shorten the open enrollment period for signing up for health coverage, in addition to a host of other changes that will decrease affordability for millions nationwide."
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