If you’re one of the millions of Americans who buy their own health insurance from a public exchange, get ready for a sharp increase in costs next year.

Not only are COVID-era subsidies on the premiums set to expire, but insurers are expected to raise the premiums themselves by more than they have in any year since 2018 — by a median of 15%, according to one analysis of public insurance filings.

Some people “are going to be hit with this double whammy,” Cynthia Cox, director of the Peterson-KFF Health System Tracker Project that did the analysis, recently told The Wall Street Journal.

Just removing the premium subsidies — known as “enhanced premium tax credits” — will increase out-of-pocket costs for subsidized enrollees by over 75%, on average, according to estimates from the Peterson-KFF project.

For example, depending on their income, a 45-year-old with a basic silver plan could see their annual costs go up by as much as $1,247 if the government doesn’t cover the same share of their premiums.

Add to that the premium increases. Interestingly, insurers are raising their premiums in part because of the end of the subsidies, according to the Peterson-KFF analysis.

Ninety-two percent (nearly 20 million) of Americans with Affordable Care Act coverage (aka Obamacare) used the subsidies last year. If it’s that much more expensive to get ACA coverage, many current enrollees — probably the healthiest ones — are likely to drop it, the thinking is. That would leave insurers covering a smaller pool of people who tend to require more health care.

The Peterson-KFF study looked at preliminary rate increases filed by 105 insurers who sell ACA coverage through public marketplaces in 19 states and Washington, D.C. Besides the removal of tax credits, insurers attributed the increases to the rising cost of health care and the potential impact of tariffs on pharmaceutical prices.

Of course, with enough support, Congress could still reauthorize the premium tax credits, which were initiated by the American Rescue Plan Act in 2021 and then extended through 2025 by the Inflation Reduction Act. But it’s worth noting that lawmakers chose not to include an extension in the recently approved budget bill.

So what? If you’re covered by an ACA plan, now’s the time to make an action plan.

•  If you’ve been putting off any important healthcare, the next few months could be a good time to get it done.

•  If you have a high-deductible health plan with a Health Savings Account, consider increasing your contributions. If your policy changes — or you drop coverage — your HSA money is still yours to keep.

•  Be proactive. Look at your budget ahead of the fall enrollment period to see how much of an increase you might be able to afford if you make trade-offs.

•  Consider whether you have any other options, like employer-sponsored coverage from your spouse or Medicaid.

Related Reading

ACA Premiums Expected to Rise in 2026 | What to Know (Lively)

Americans’ Challenges with Health Care Costs (KFF)

The Stealth Retirement Account You Should Know About (SoFi)

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