Premiums for Popular Health Insurance Plans to Spike 30 Percent

Premiums for the most popular types of plans sold on the federal health insurance marketplace Healthcare.gov will increase on average by 30 percent next year, affecting up to 17 million Americans who buy coverage on the federal marketplace. These higher prices, along with the expiration of pandemic-era subsidies, will cause millions of people to see their health insurance payments double or even triple in 2026. The premium spikes mirror the rising cost of private-employer-sponsored plans and arrive during a congressional battle over health insurance costs.

Key Takeaways:

• The average benchmark premium for a 40-year-old individual will increase to $647 from $497 this year, a 30 percent spike.
• The premium increase will affect up to 17 million Americans who buy coverage on the federal marketplace.
• The higher premiums will cause millions of people to see their health insurance payments double or even triple in 2026.
• Approximately half of all marketplace shoppers paid nothing for their monthly premium, and many higher-income earners received hundreds more in subsidies every month.
• Enhanced subsidies helped Americans in higher income brackets, including small-business owners, afford insurance sold through the law.
• The expiration of extra subsidies will cost $350 billion over a decade, but would soften the blow of rising insurance costs for consumers.
• Republicans have long criticized the 2010 health care law that set up the marketplaces and say the subsidies should either expire or be negotiated at the end of the year.
• Democrats have refused to vote for a funding bill without extending the extra subsidies to help cushion consumers against the rising costs.
• Insurers have cited growing drug and hospital costs and medical inflation as reasons for higher premiums.

Statistics:

• Average benchmark premium for a 40-year-old individual: $497 (2022) -> $647 (2023), a 30 percent increase.
• Up to 17 million Americans whose premiums will increase.
• Total enrollment in marketplace plans: approximately 24 million this year.
• The average monthly premium for a benchmark plan for a 40-year-old individual will increase by $150.
• Congress approved the extra subsidies in 2021 to help more people afford health insurance during the pandemic.
• The premium increase will become visible to more Americans on Monday, when the Trump administration is expected to open Healthcare.gov for window shopping.

Sources:

• Paige Winfield Cunningham, "Premiums for Popular Health Insurance Plans to Spike 30 Percent." The Washington Post.
• Centers for Medicare and Medicaid Services (CMS).
• The Washington Post.
• KFF (nonpartisan health policy research organization).
• AHIP (health insurance trade association).
• Congressional Budget Office.