Health insurance plans from the Affordable Care Act marketplace are likely going to cost a lot more next year.
According to The Wall Street Journal, insurers are seeking double-digit rate increases in 2026 for Obamacare plans. The outlet reported that Blue Cross & Blue Shield of Illinois is asking for a 27% rate hike, while Blue Cross in Texas is looking to raise rates 21%. Under the largest ACA plans in Georgia, Rhode Island, and Washington state, premiums are set to climb more than 20%.
The insurance companies say that hefty rate hikes are necessary because of the rising cost of healthcare and changes to federal policy that cut consumer subsidies, which made the plans more affordable. About 24 million people are enrolled in ACA health insurance plans.
Clare Forry, 40, of Arlington Heights, Illinois, told the Journal that if her Blue Cross & Blue Shield plan jumps from its current monthly cost of about $590 a month to more than $700, it would be "pretty hard to grasp."
"That's some people's mortgage payments," the retail-industry manager said.
The federal subsidies passed by Congress in 2021 will expire in December, meaning that most Obamacare enrollees will see substantially higher monthly insurance bills next year.
Cynthia Cox, a vice president at health-research nonprofit KFF, told the Journal that some people are "going to be hit with this double whammy" of bigger monthly insurance bills and the loss of the subsidy that ensures they can pay them.
A KFF analysis of rate requests for the largest ACA plans in 17 states and the District of Columbia found that the median requested premium increase was around 15%, making the anticipated rate hike the highest since 2018.
Projected increases in the cost of enrollees' care are behind the soaring premium rates, insurers say.
An Elevance spokeswoman referred the Journal to comments company executives made on a Thursday call with Wall Street analysts, in which they cited a spike in emergency-room visits, expensive drugs, and an increased use of behavioral healthcare by ACA plan enrollees.
A Health Care Service spokesman told the outlet that "plans are priced to reflect anticipated healthcare needs" and that the nonprofit promotes "market stability and sustainable access to comprehensive coverage for our members." Rate changes would vary by member, plan, and location, he said.
Some insurers also reportedly cited tariffs as a factor that could add to the cost of drugs and medical supplies.
Smaller subsidies and new rules that impose stricter sign-up requirements are also expected to lead to a drop in ACA marketplace enrollment and contribute to the rise in premiums.
According to insurers and actuaries, the people who remain in the health plans when enrollment falls are typically less healthy and incur higher claims costs on average.
Nicole Weatherholtz ✉
Nicole Weatherholtz, a Newsmax general assignment reporter covers news, politics, and culture. She is a National Newspaper Association award-winning journalist.
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