LANSING — Over half a million Michigan residents will likely pay more for healthcare in 2026, largely due to expiring federal healthcare subsidies and increased costs for providers.
The Enhanced Premium Tax Credits, which are at the center of the federal government shutdown, have helped double enrollment in the Affordable Care Act from pre-pandemic levels.
Those subsidies over 90% of ACA recipients, and experts say that their expiration will lead to troubles for consumers and for health systems.
“That is why those insurance premiums are are are increasing, and why people, as they are trying to get a plan, might realize it’s $400, $700 more than what they paid last year,” said Karley Abramson, a research associate with the Citizens Research Council.
On average, insurers are increasing their Michigan rates for 2026 by 20%.
Experts say that those higher costs could lead to lower insurance enrollment, further driving up prices.
“As the prices go up, fewer healthy people will then opt into enrolling in coverage,” Abramson said. “Having healthier people in the general insurance pool is what helps keep costs low, because generally, healthy people do not cost as much as people who are struggling with existing conditions.”
Open enrollment kicked off on Nov. 1 and will run through Jan. 15 of next year.
Consumers need to select a plan by Dec. 15 to ensure they’re covered by Jan. 1 — otherwise, they’ll be enrolled later.
The rate increases also come as some insurers have stopped offering Michigan plans entirely.
“Because of the rising costs, nearly half of the insurance providers on the individual marketplace are scaling back their plans and offerings in some capacity, so that will leave less choice,” said Brian Mills, a spokesperson for the Michigan Association of Health Plans.
Mills says that most plans in Northern Michigan are provided by larger insurers like United Healthcare and Blue Cross, Blue Shield.
“They are all remaining in the marketplace, and they do have a number of diverse offerings that customers can still shop for in Northern Michigan,” he said.
More information on enrollment can be found at healthcare.gov and with the state Department of Insurance and Financial Services.