The deadline to enroll for healthcare coverage on the federal insurance marketplace, known as Obamacare, is looming, but that coverage is likely to cost significantly more in 2026.
That’s because the federal government failed to renew tax credits that expire at the end of this year, and those credits drastically reduced the cost of health insurance for some people.
There will still be subsidies available, but not for as many people and not covering as much of the premium cost for those plans as the subsidies available over the last few years.
Also a cause for higher costs: Insurers who sell plans on the Marketplace have raised their prices.
“They are increasing the premiums they’ll charge for 2026 generally by about 10% to 20%, in some cases over 20%, and this could all add up to a doubling of premiums for some folks,” said Nick Hut, senior editor for Healthcare Financial Management Association.
Time is running short. If you want your coverage to begin January 1st, you’ll need to enroll in a marketplace plan by December 15th.
If you have trouble finding affordable coverage on the marketplace, there may be alternatives. Medicaid might be one, depending on your income bracket and whether you live in a Medicaid expansion state. Qualifying for whatever the Medicaid program is called in your region may be easier than you think, depending on which state you live in.
A final option is employer-sponsored coverage.
“Some people on Obamacare have had access to employer-sponsored insurance but chose not to sign up, just because of the cost,” Hut said. “Now maybe they could revisit that option.”