Insurers are requesting the highest ACA premium increases since 2018, according to an analysis by the Peterson-KFF Health System Tracker published July 18.
Insurers are requesting a median increase of 15% based on preliminary rate filings. KFF analyzed rate increase requests from 105 insurers in 20 markets — 19 states and the District of Columbia.
Here are five things to know:
- Rising medical costs were a major factor driving premium increases. On average, insurers expect medical trend to rise by 8%, similar to the previous year.
- GLP-1 drugs and healthcare labor market pressures are also contributing to rising costs, insurers said.
- The expiration of enhanced premium tax credits is also contributing to rising premiums. Insurers expect a large share of healthier enrollees to leave the market, according to KFF, leaving the risk pool sicker. In rate filings analyzed by KFF, insurers said they raised premiums by an additional 4% than they would have if the subsidies were renewed.
- Some insurers mentioned tariffs, which could raise the cost of drugs if implemented, in their rate increase requests.
- Most insurers are requesting rate increases of between 10 and 20% for 2026, but more than a quarter are requesting an increase of more than 20%. Last year, just 3% of insurers requested rate hikes above 20%.
See the full report here.
