2026 Health Insurance Premiums Jump as Subsidies Expire, Sparking Coverage Concerns

The expiration of enhanced subsidies for the Affordable Care Act (ACA) at the start of 2026 has led to a significant jump in health insurance premiums for millions of Americans according to analysis. On average, subsidized enrollees are seeing their costs rise by 114%, according to an analysis by KFF according to KFF data. These increases are compounding broader trends of rising health care costs across the U.S.

Some individuals are already struggling with the financial burden. For example, Salt Lake City-based filmmaker Stan Clawson reported his monthly premium will jump from $350 to nearly $500 according to reports. Others, like social worker Katelin Provost, face even steeper increases, with costs rising from $85 to $750 per month according to analysis. Many are worried about forgoing coverage altogether due to the high costs.

The expiration of these subsidies disproportionately affects middle-class earners who rely on ACA coverage. These individuals often lack employer-sponsored insurance or qualify for Medicaid according to analysis. The impact is likely to be most severe in states with large ACA enrollments, such as Florida, which has more than 4.7 million enrollees according to data.

Why Did This Happen?

The subsidies had been extended through the end of 2025 to help Americans during the pandemic. Lawmakers, including Democrats and moderate Republicans, tried to extend them into 2026, but efforts failed. The subsidies expired as scheduled on January 1 according to reports.

Without these subsidies, some ACA enrollees now pay up to 8.5% of their income for coverage. This has led to concerns about affordability for lower- and middle-income individuals who rely on these programs according to analysis.

How Did Markets React?

The ACA subsidy expiration has also raised concerns among analysts about broader coverage trends. Experts project that 4.8 million people may drop their coverage in 2026, especially younger, healthier individuals who may find the premiums unaffordable according to projections. This could lead to a sicker, older population remaining in the ACA market, which could drive premiums higher for those who stay enrolled

according to analysis.

The impact of these changes could also have broader policy implications. With the 2026 midterm elections approaching, health care affordability is a top concern for voters according to polling data. The political fallout from the issue may affect the chances of lawmakers who failed to secure an extension.

What Are Analysts Watching Next?

Beyond ACA-related news, the health care sector has also been affected by other developments. For example, F5, Inc. (FFIV) is facing a securities class action following a cybersecurity breach that delayed product development and led to a steep drop in share price according to reports. The incident raised questions about the company’s internal controls and transparency with investors.

Similarly, Inspire Medical Systems (INSP) is dealing with a lawsuit alleging that the company concealed operational failures related to its Inspire V device. The legal action claims these issues led to a catastrophic guidance cut and a stock price drop of more than $42 according to legal documents.

Separately, the Trump administration is facing legal challenges over its decision to eliminate coverage for gender-affirming care in federal health insurance programs according to reports. A group of federal employees filed a complaint arguing that the policy is discriminatory. The issue has drawn attention from both civil rights groups and medical associations, many of which oppose the restrictions on care for transgender individuals according to analysis.

Health care affordability and policy shifts will continue to shape the landscape for investors and lawmakers. With the ACA subsidies now expired and new legal and market challenges emerging, the sector is expected to remain in focus in 2026.