2026 Health Insurance Rates Are Rising — What You Need to Know
Posted: August 27, 2025
Changes are coming to your health insurance rates in 2026 — and they could have a huge impact on your finances beginning on January 1. Why? The extra savings you’ve been getting thanks to the American Rescue Plan (ARP) will end on December 31.
Many families could see their annual premiums rise hundreds or even thousands of dollars. The good news is that you still have time to prepare for the upcoming changes and make smart choices for your 2026 coverage.
Why Your Insurance Premiums Will Increase in 2026
The ARP was a federal relief package that temporarily expanded premium subsidies for people buying coverage through the ACA Marketplace. Before the ARP, families earning more than 400% of the Federal Poverty Level (FPL) received no assistance with premiums. The ARP changed that by offering subsidies for high-income families for the first time while increasing help for low-income families already receiving aid.
However, those subsidies will disappear completely in 2026. We will return to the previous subsidy rules, meaning less help — or no help at all — for many California families. If you fall above the 400% FPL threshold, your premium costs will likely jump significantly.
Not sure where you fall on the income scale and what your current subsidies cover? See our program eligibility guide.
The Reasoning Behind Rising Insurance Costs
Congress introduced legislation — nicknamed the Big Beautiful Bill — that many hoped would provide a long-term solution to rising insurance costs. Unfortunately, the bill did not pass in time to extend ARP subsidies beyond 2025. Whether Congress decides to revisit the issue remains to be seen.
According to the KFF, families receiving ARP discounts since 2021 will see the biggest impact. The loss of these enhanced subsidies means many Californians will pay significantly more for the same insurance coverage they have today. But remember — you don’t have to navigate these changes alone.
Understanding Your Current Risk Level
Not everyone will be affected equally by the upcoming changes. Families earning between 400% and 600% of the FPL face the steepest increases because they will receive zero assistance. Although those earning less may still qualify for some help, they will likely see less aid compared to their current levels.
If you’re unsure where you fall on the income scale or what your current subsidies actually cover, don’t guess. These details are critical when planning for 2026 — even a minor miscalculation could cost you hundreds of dollars monthly.
How You Can Take Immediate Action
Although we won’t see the actual 2026 rates until November 1, you can do several things right now to prepare:
- Contact Health for California: Our licensed agents can review your current situation before the new rates lock in and help you understand how the subsidy changes affect your situation.
- Consider plan adjustments: If you’re currently on a Gold or Platinum plan, you may need to consider moving to a Silver or Bronze so you can enjoy essential coverage while reducing your monthly costs.
- Explore alternatives: Our team can help you explore all your insurance options, including state-specific options that offset some of the federal subsidy losses.
Get in Touch With Health for California Before It’s Too Late
At Health for California, we can help you find coverage that fits your budget, even as subsidies change. Our team has helped thousands of California families navigate insurance challenges for decades. We understand exactly how the upcoming subsidy modifications affect different income levels and family situations.
Call 877-752-4737 today to discuss your options before your current rates increase.
