Individual Health Insurance Premiums Poised for Median 15% Increase in 2026, Highest in 15 Years

Americans are bracing for the most substantial increase in health insurance costs in 15 years, with projections indicating a median 15% rise in individual market premiums for 2026. This comes as employer-sponsored health plans are also expected to see an average 6.5% increase, according to a recent survey by Mercer, a benefits consultant. The Financial Times highlighted this trend, reporting that "Americans face biggest increase in health insurance costs in 15 years."

Several factors are driving these escalating costs, including higher drug prices, particularly for new advanced therapeutics like GLP-1 weight-loss drugs, and rising hospital fees. Increased demand for healthcare services, partly due to the lingering effects of delayed care from the COVID-19 pandemic, also contributes to the upward pressure on premiums. Furthermore, ongoing consolidation among healthcare providers strengthens their ability to negotiate higher reimbursement rates with insurers.

The projected increases have drawn political commentary, with Andrew Bates, White House Deputy Press Secretary, stating in a tweet, "> Another top promise broken in order to cut taxes for the rich." He linked the rising costs to policies perceived as benefiting the wealthy. Policy changes, such as the planned expiration of enhanced premium tax credits for Affordable Care Act (ACA) marketplace enrollees at the end of 2025, are also expected to significantly impact out-of-pocket costs for millions, potentially leading to an increase in the uninsured population.

For many households, these rising premiums will exacerbate existing financial burdens, especially amid broader inflationary pressures. Health research groups like KFF have consistently noted that healthcare costs are a top financial worry for U.S. families, influencing decisions about insurance coverage and care seeking. Some states are seeing proposed premium hikes far exceeding the national median, with increases of over 60% in New York and more than 30% in Colorado for certain plans.