Rising Health Insurance Premiums: A Nationwide Concern for 2026

As the United States approaches 2026, employers and individuals are bracing for significant increases in health insurance premiums. Consulting firm Mercer projects an average rise of nearly 9% in workplace health care costs, marking the steepest surge since 2010. This increase is attributed to various factors, including higher wages for health care workers, the introduction of costly new treatments, and an uptick in benefit utilization following the COVID-19 pandemic. Employers are expected to share these costs with employees, primarily through increased copays and deductibles.

Employers brace for biggest health care cost surge in 15 yearsEmployers Brace for the Biggest Health Benefit Cost Increase in 15 YearsNH JournalThe KeystoneAM Best reports continued growth and shifts in the global health reinsurance marketFederation of American ScientistsGST Exemption May Lower Health Insurance Premiums, But Not by Full 18%Malaysia’s healthcare crisis hitting all income groups

In Pennsylvania, the state Insurance Department has proposed a staggering 19% average increase in health insurance premiums for individual enrollees. This rise is compounded by the expiration of enhanced federal subsidies, which could leave many families facing substantial out-of-pocket costs. For instance, a family of four in Dauphin County could see their monthly premium for a bronze plan skyrocket from $5 to over $1,000 if these subsidies are not extended.

The Keystone

The anticipated hikes in health insurance premiums are influenced by several interconnected factors. Rising medical costs, particularly for outpatient services and medications, are a primary driver. In Illinois, the average rate increase for individual plans is projected at 28.8%, with similar trends observed across the nation. The expiration of federal enhanced premium tax credits is expected to exacerbate these increases, potentially resulting in millions more uninsured Americans.

Illinois Department of Insurance Releases 2026 Plan Year Rates for the Get Covered Illinois Marketplace

In Malaysia, a similar trend is evident, with private healthcare costs rising nearly 12% in 2024. Health Minister Dzulkefly Ahmad noted that even high-income earners are reconsidering their private insurance policies due to escalating costs, leading to increased reliance on public hospitals.

The implications of these rising costs are significant for both consumers and employers. Many businesses are exploring cost-cutting measures, with 59% of employers planning to implement changes to mitigate rising expenses. This could lead to higher out-of-pocket costs for employees when accessing care. In Pennsylvania, experts are urging individuals to prepare for the upcoming open enrollment period by assessing their financial situations and advocating for the restoration of federal subsidies.

Employers brace for biggest health care cost surge in 15 years

Critics argue that the rising costs could push more individuals, including those from higher income brackets, to seek treatment in public healthcare facilities, thereby straining already overburdened systems. In Malaysia, the Federation of Malaysian Consumers Associations highlighted that the trend of high-income earners using public hospitals signals a healthcare crisis affecting all income groups.

Malaysia’s healthcare crisis hitting all income groups

Officials and industry experts are calling for immediate action to address these challenges. In the U.S., there is a push for Congress to extend enhanced premium tax credits to alleviate the financial burden on families. In Malaysia, the government is urged to regulate insurance prices and improve public healthcare capacity to accommodate the influx of patients.

Malaysia’s healthcare crisis hitting all income groups

As the open enrollment period approaches, stakeholders are encouraged to voice their concerns and advocate for necessary changes to ensure that health insurance remains accessible and affordable for all.

Illinois Department of Insurance Releases 2026 Plan Year Rates for the Get Covered Illinois Marketplace

• “If insurance premiums … continue to rise, even the T20 may reconsider [continuing] their policies,” — Dzulkefly Ahmad, Health Minister of Malaysia

• “It is going to take a Hail Mary to get these enhanced subsidies extended,” — Thomas Purcell, Vice President of URL Insurance Group

Pa. health insurance rates to jump as subsidies end

• “When people don’t get coverage, they put off care and that makes everyone sicker. That is not good for a lot of different reasons. The more we can get people to realize that and voice their concerns, the more likely we might get a year extension or a two-year extension or at least until the next election cycle.” — Thomas Purcell, Vice President of URL Insurance Group

Pa. health insurance rates to jump as subsidies end

While Mercer reports a nearly 9% increase in workplace health care costs, the Pennsylvania Insurance Department anticipates a 19% increase in premiums for individual plans. Additionally, Illinois projects an average increase of 28.8% for individual plans, highlighting discrepancies in regional projections. The impact of the expiration of federal enhanced premium tax credits remains uncertain, with varying opinions on how this will affect overall insurance costs and coverage availability.

Illinois Department of Insurance Releases 2026 Plan Year Rates for the Get Covered Illinois Marketplace