Editor’s Note: This story originally appeared on The Penny Hoarder.
Are you paying more for insurance in 2026?
You’re not alone. Employees across the country had health insurance premiums spike this year, 7% on average according to a survey from investment company Mercer.
And the Kaiser Family Foundation found that those with plans through the Health Insurance Marketplace are typically facing an even higher hike, up to 30%.
This article will cover why this is happening and what you can do about it.
Why did my health insurance premiums go up?
The premium increases of 2026 are in some ways a continuation of different things.
First, your employer may have bought their health insurance plan through a broker instead of directly from an insurance company. Brokers, who tout their expertise, are paid on commission and can be incentivized to sell your employer more expensive plans.
But brokers are only one part of the issue. Inflation is driving up the cost of everything, including medical care — the Bureau of Labor Statistics’ Consumer Price Index data show that medical costs grew faster than the average inflation rate in 2025.
Prescription drug spending is up, too, which can cause premiums to rise. For instance, more employer-sponsored plans are covering GLP-1s for obesity. Diabetes medications, cancer treatments, gene therapies and others are also driving up costs.
Affordable Care Act subsidies expired in 2025, driving up costs of plans offered through the marketplace. The subsidies, which are tax credits, helped lessen the monthly cost of insurance plans offered through the ACA.
What are my options?
If you’re struggling to make the math work with higher premiums, there are a few steps you can take to try to remedy the situation.
1. Talk with your company
If you’re on an employer-sponsored plan, explaining the dire situation to those who have the power to change it could, if you’re lucky, get the wheels turning on a solution.
“Go to HR and the CFO — not just HR,” says David Contorno, founder and CEO of E Powered Benefits. “We go to HR for these things constantly, but they don’t have the financial insight into the health plan. They’re just looking at the human impact. But if enough people went to the CFO, then hopefully they’d start looking at other solutions.”
This is what Contorno’s company, E Powered Benefits, tries to help with. It works with employers — like those facing affordability issues — to put together employer-sponsored health insurance plans that are still compliant, but less traditional and cost less.
2. Switch employers
If costs don’t change with your current employer, you may consider switching. However, you may run into similar affordability issues. Employer-sponsored health insurance premium spikes are a widespread issue in 2026 — not one unique to your particular employer.
But shopping around for work and health insurance is still an option — just unlikely a silver bullet.
3. Medicaid may be an option in select circumstances
Medicaid is a joint state and federal program for low-income individuals. There are multiple requirements for eligibility, including your modified adjusted gross income (MAGI) and being a U.S. citizen or certain qualified non-citizen.
Medicaid laws vary by state, and there are 10 states that have not opted into Medicaid expansion. Depending on where you live, you might be able to enroll in Medicaid rather than accepting your employer’s health insurance plan offer.
“There is a bottom floor threshold at which you would qualify for Medicaid, regardless of whether or not you were offered employer insurance,” Contorno said. “But it’s a really low multiple of the federal poverty level. The reality is that if you’re making anything more than the federal minimum wage, you probably won’t qualify for that rule.”
4. Take advantage of charity care
Premiums aren’t the only way you pay for health insurance. There are co-pays, deductibles and other out-of-pocket costs throughout the year. If you have health insurance, you might be surprised to learn you could qualify for the hospital system’s financial assistance policy (FAP).
The ACA requires nonprofit hospital systems to run these programs, also known as charity care. Depending on your location and family size, income limits can go well up into the six figures.
And you can use them even if you have insurance. In some cases, they can wipe your bill down to $0. If you can’t find information about your hospital system’s FAP online, call the billing department and request the information directly.
In some cases, you can negotiate medical bills you can’t afford, even if you don’t qualify specifically for charity care, so reach out to your provider to ask.
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