ACA marketplace premiums rise again as subsidy cuts squeeze consumers

People who buy coverage through the Affordable Care Act marketplace are facing another steep increase, with benchmark premiums set to climb an average of 13% after already rising 26% in the prior year.

The consecutive increases are likely to affect Americans without employer-sponsored insurance, including self-employed workers and employees at small businesses. In most states, open enrollment begins Nov. 1, giving shoppers a chance to review next year’s plans and prices.

The 13% figure applies to finalized benchmark silver premiums. Insurers had initially sought a median increase of 15% across marketplace plans, though final costs differ depending on the state, insurer and plan. Because benchmark premiums help determine federal subsidies, they also influence the amount many enrollees pay out of pocket.

The higher prices come as enhanced federal tax credits that had helped reduce premiums have expired. Those with incomes above 400% of the federal poverty level no longer qualify for premium tax credits and must cover the full cost of their plans.

A Washington Post analysis highlighted the potential impact: a 40-year-old in Arizona earning $65,000 could see a Blue Cross Blue Shield marketplace premium increase from $300 a month to $555 in 2027. Actual costs vary based on location and coverage choice.

Enrollment has also weakened. Marketplace plan selections dropped by 1.2 million during the 2026 sign-up period, and by February, KFF said 2.6 million fewer people were enrolled and paying premiums than a year earlier. Insurers attribute the higher rates to rising medical costs and the end of the enhanced tax credits.

Some shoppers may also have fewer choices. As of late October, 11 insurers had said they would leave at least one state marketplace for 2027, according to KFF. When an insurer exits, customers may have to switch coverage, and their doctors or prescriptions may no longer be included.