Health Insurance Rates to Rise by 9% in 2026, Biggest Increase Since 2010, Says Survey

Working-age Americans can expect the largest health insurance rate increase since 2010, with costs rising by an average of nearly 9% in 2026. Employers are shifting escalating health care costs to workers through higher deductibles and copayments, and individuals purchasing their own insurance through the Affordable Care Act marketplace can also expect double-digit rate increases. Overall, health care costs are rising due to increased prices from hospitals, doctors, and drug companies, as well as higher utilization of health care services.

Working-age Americans can expect the largest health insurance rate increase since 2010, with costs rising by an average of nearly 9% in 2026. Employers are shifting escalating health care costs to workers through higher deductibles and copayments, and individuals purchasing their own insurance through the Affordable Care Act marketplace can also expect double-digit rate increases. Overall, health care costs are rising due to increased prices from hospitals, doctors, and drug companies, as well as higher utilization of health care services.

According to a report by Aon plc, U.S. employer health care costs are projected to rise 9.5% in 2026, exceeding $17,000 per employee Aon: U.S. Employer Health Care Costs Expected to Rise 9.5 Percent in 2026^[2]. This marks the third consecutive year of elevated health care cost trends near double digits. The continued rise in chronic conditions, such as musculoskeletal and cardiovascular disease, alongside an increase in high-cost conditions like cancer, remains a primary driver of escalating medical costs in the U.S. Additionally, prescription drug spending is rising, driven by greater use of costly brand-name and specialty medications Aon: U.S. Employer Health Care Costs Expected to Rise 9.5 Percent in 2026^[2].

Employers are expected to continue absorbing the largest share of health care cost increases, mitigating the rising expenditures through strategies such as benefit design changes, employee payroll contribution increases, partnerships with point solution vendors, and targeted chronic condition management. However, as medical inflation persists, it is also placing pressure on employers' ability to invest in other total rewards and people priorities, making it increasingly difficult to balance workforce needs holistically Aon: U.S. Employer Health Care Costs Expected to Rise 9.5 Percent in 2026^[2].

For those enrolled in employer-sponsored commercial insurance, Medicare, and the Affordable Care Act exchanges, premiums are expected to increase well in excess of general inflation or the consumer price index in 2026. Workers with employer-sponsored health insurance can expect to spend on average 6.5% more in premiums in 2026, according to a Mercer’s National Survey of Employer-Sponsored Health Plans. This increase is more than twice the inflation rate and will translate into hundreds if not thousands of dollars more annually spent on health insurance premiums Health Insurance Premiums To Rise Well Above Inflation For Most Americans^[1].

Out-of-pocket costs for patients will also go up for most, including deductibles and co-payments. The base average monthly premium for the outpatient drug benefit called Part D is projected to increase by 6% in 2026 to about $39, which is the maximum allowable increase under one of the Inflation Reduction Act’s provisions. Medicare Part B premiums are expected to be over $200 a month in 2026, representing a 12.6% increase Health Insurance Premiums To Rise Well Above Inflation For Most Americans^[1].

Affordable Care Act exchanges are likely to see even more dramatic increases in consumer premiums than in the employer-sponsored market. ACA insurers are seeking a median 18% premium hike for 2026, the biggest since 2018 and well above last year’s 7% figure Health Insurance Premiums To Rise Well Above Inflation For Most Americans^[1]. Without enhanced subsidies on the exchanges, the Congressional Budget Office expects costs to rise by a whopping 75% for most people and 90% for those in rural areas.

The situation is compounded by the fact that Americans have grown accustomed to paying more for less. Health insurers have been placing more restrictions on prescription drug coverage while raising premiums, deductibles, and out-of-pocket cost sharing. According to the Commonwealth Fund, the average annual deductible for an employee of a large firm was $3,547 in 2023, and for an employee of a small firm, it was $5,074 Health Insurance Premiums To Rise Well Above Inflation For Most Americans^[1].

In conclusion, health insurance premiums and out-of-pocket costs are projected to rise significantly in 2026, impacting both employers and individuals. Employers will continue to absorb a significant portion of the cost increases, while employees will face higher deductibles and copayments. The increased costs are driven by higher utilization of health care services and higher prices from hospitals, doctors, and drug companies.