What Rising Individual Health Insurance Costs Mean for 2026 — And the Best Options for People Losing Subsidies

📈 The New Reality of Individual Health Insurance: Rising Costs, Fewer Subsidies & What You Can Still Do to Stay Covered

Individual health insurance has always been a balancing act, but 2025–2026 brings a shift many people don’t feel prepared for. With premiums climbing and enhanced ACA subsidies set to expire, millions who depend on Marketplace plans are suddenly facing much higher costs.

For many, this isn’t just about paying more. It’s about whether they can stay insured at all.

🚨 Why Individual Premiums Are Increasing

Premiums on the individual marketplace are rising for a few major reasons:

• Enhanced ACA subsidies expire at the end of 2025

• Health-care costs continue to increase

• More people may drop coverage due to cost

• Self-employed and gig workers have no employer plan to fall back on

The result: 2026 premiums could be dramatically higher for anyone who purchases their own coverage.

✨ Real-Life Scenarios: How Rising Costs Affect Everyday People

Below are realistic examples showing how individuals and families may feel this shift — and what their best options are to stay covered.

Alex, 34 — Freelance Graphic Designer

• Current premium with subsidies: $128/month

• Projected 2026 premium without subsidies: $412/month

• Deductible: $7,500

Alex is healthy and rarely uses his plan, but paying over $400/month after subsidies disappear feels impossible.

Best Outcome for Alex:

• Move to a Bronze or Catastrophic plan

• Pair with an HSA for emergencies

• Consider Direct Primary Care (DPC) for affordable routine care

Why this works: Lower premiums, major medical protection, and tax-advantaged savings.

Jason & Maria, 40 — Recently Self-Employed

• Current premium with subsidies: $294/month

• Projected 2026 premium without subsidies: $1,137/month

Jason left his job to start his own contracting business, leaving them without employer insurance. Maria has a chronic condition, so staying covered is essential.

Best Outcome for Jason & Maria:

• Compare private off-Marketplace plans

• Add accident or critical illness supplements

• Explore high-deductible or virtual-first plans

Why this works: Preserves comprehensive benefits while keeping premiums manageable.

Danielle, 42 — Rideshare Driver and Mother of Two

• Current premium with subsidies: $210/month

• Projected 2026 premium without subsidies: $876/month

Danielle can’t absorb a sudden $600 increase, but she also can’t risk going uninsured with two kids.

Best Outcome for Danielle:

• Check if her kids qualify for CHIP

• Switch herself to a lower-tier Marketplace plan

• Consider a virtual-first or catastrophic plan

Why this works: Kids stay covered, and Danielle keeps premiums affordable.

🔎 What Individuals Should Be Doing Right Now

Here are the smartest steps for anyone relying on individual health insurance:

1. Compare every plan — both on and off the Marketplace.

Some private plans may offer lower premiums once subsidies disappear.

2. Consider supplemental plans.

Accident, hospital, or critical illness policies help reduce financial risk.

3. Look into Direct Primary Care (DPC).

Predictable monthly pricing helps control routine costs.

4. Explore HSA-compatible plans.

Great for relatively healthy individuals who use care infrequently.

5. Watch for state-level support programs.

Some states may offer new assistance as subsidies phase out.

💡 Final Takeaway: The Best Outcome Comes From Strategy

The expiration of subsidies doesn’t have to mean going uninsured. It does mean being strategic and proactive.

Consumers should focus on:

• Maintaining some level of coverage

• Balancing premiums with out-of-pocket risk

• Using supplemental coverage wisely

• Re-evaluating annually

• Working with a broker who understands the shifting market