Their premium would rise from about $1,000 a month to nearly $1,500 a month, according to KFF projections.
“That’s a huge increase,” Jenkins said. “It’s more than some people pay for rent or a mortgage.”
Still, she said, some people who can afford it may decide to pay the higher premium rather than go without insurance because they want the peace of mind that comes with knowing they are protected if they get sick.
Others may decide to look for coverage outside the ACA marketplace, where premiums could be lower, especially for healthy people who don’t need comprehensive benefits. But those plans typically don’t cover preexisting conditions and may not include essential health benefits required by the ACA.
In the end, Jenkins said, people will need to weigh their options carefully and consider their own health needs, budget and risk tolerance when deciding whether to stick with an ACA plan or look for other coverage.
“It’s a personal decision,” she said. “But I would urge people to at least look at their options before making a final choice.”
about the potential for increased costs for ACA health plans next year.
As the end of the year approaches, individuals considering early retirement or starting a small business should be aware of the changes that may impact their health insurance premiums. The Affordable Care Act, commonly known as Obamacare, is expected to see sharp increases in costs next year, partially due to policy changes made by the Trump administration and Congress. Additionally, the more generous tax subsidies that have helped offset these costs for many policyholders are set to expire at the end of December.
The potential implications of these changes are significant, particularly for those who may no longer qualify for tax credits due to increased income thresholds. For individuals earning more than four times the federal poverty level, which is currently set at $62,600 for a single person and $84,600 for a couple, the loss of subsidies could result in out-of-pocket premiums exceeding $1,000 per month.
Small-business owners and early retirees are among those who may be most affected by these changes, as many rely on ACA plans for coverage. While the subsidies were temporarily enhanced during the covid pandemic to make coverage more affordable, they are set to revert to previous levels if not extended by Congress.
The potential impact of this subsidy cliff has some Republican lawmakers concerned about the upcoming midterm elections, as support for premium assistance extends across party lines. While critics argue that the enhanced subsidies have led to fraud and reduced employer coverage, supporters credit them for record enrollment in ACA plans.
Individuals should carefully consider their options and weigh the potential costs of ACA plans against other coverage options. While some may choose to pay higher premiums for the peace of mind that comes with comprehensive coverage, others may explore alternatives outside the marketplace. Ultimately, the decision will depend on personal health needs, budget, and risk tolerance.
As November approaches, individuals should stay informed about the potential changes to ACA health plans and consider how they may impact their own situation. By understanding the factors at play and exploring all available options, individuals can make an informed decision about their health insurance coverage for the upcoming year. As of now, a couple pays around $600 a month in premiums, which amounts to about 8.5% of their household income. With federal subsidies, an additional $1,000 is provided to cover the remaining costs. However, if the tax credits expire next year, this same couple will no longer receive any federal assistance due to their income being over four times the poverty limit.
Without subsidies, the couple would have to pay the full monthly premium, which is estimated to be around $1,800 based on the initial 2026 premium rates filed with state regulators. This significant increase in healthcare costs could have a major impact on their finances and overall budget.
It is advised that individuals keep a close eye on their insurance rates, especially during the open enrollment season, which typically begins on Nov. 1. This allows them to evaluate their current plan and make any necessary changes. However, starting in 2027, the open enrollment period will be shortened by about a month, so it is crucial to make decisions promptly.
For those enrolling in 2026, particularly self-employed individuals or those planning to retire early, it is important to monitor their incomes throughout the year. Unexpected changes in income could result in exceeding the eligibility cap for tax credits, leading to potential repayment obligations.
For instance, a sudden increase in income from sources like retirement account withdrawals, new business opportunities, or even gambling winnings could push individuals over the income limit. This could result in having to repay significant amounts of tax credits, causing financial strain.
In conclusion, it is essential for individuals to stay informed about their healthcare costs, income changes, and potential impacts on their insurance coverage. Being proactive and carefully managing finances can help avoid unexpected repayment obligations and ensure financial stability in the long run.
