Health insurance has become significantly more expensive in 2026: how to choose more affordable options

Millions of Americans with ObamaCare (Affordable Care Act, ACA) insurance still have time to buy a policy for 2026. However, rising premiums and the expiration of expanded tax credits have led to higher-than-expected costs. Here's how to choose cheaper insurance without getting burned. NPR.

People concerned about the cost of insurance and trying to figure out options to save money are turning to insurance brokers or calling ACA call centers.

Some are considering looking for more affordable options outside the ACA. But caution is essential here.

It's unlikely that Congress will extend the expanded subsidies before the end of the year. Meanwhile, the deadline to choose an insurance plan for 2026 is fast approaching. The official end of the open enrollment period is January 15, with coverage starting February 1. In most states, it's already too late to sign up for a policy that would have taken effect on January 1.

On the subject: WHO ranking: which countries have the best health insurance

Here are five things to consider when choosing low-cost health insurance.

Short-term plans: "I need to be healthy"

Some ACA insurance buyers are considering short-term plans sold outside of the established marketplaces. Sometimes, insurance brokers actively recommend this option. Such options should be approached with caution.

Short-term plans were originally designed for transitional situations, such as job changes or college. They may superficially resemble regular insurance, with a deductible, co-pays, and a network of clinics and doctors. However, these are not ACA-compliant plans, and they are not sold on official ACA websites.

They are often cheaper than ACA plans, but they provide less coverage. Unlike the ACA, these plans can set annual and lifetime benefit limits. Most do not cover childbirth. Some do not include prescription drugs.

When applying for a short-term plan, you must complete a medical questionnaire. The insurance company may exclude certain treatments or cancel the policy retroactively if you have chronic conditions. Furthermore, depending on the terms and conditions, if an illness occurs while the policy is in effect, your renewal may be denied.

These plans are also not required to cover the ACA's required services, such as preventive care, hospitalization, or emergency care.

Because of these shortcomings, and because they are often marketed in a less-than-reliable manner, Democrats call such plans "insurance junk." The Trump administration believes they are suitable for some people and advocates for their wider adoption.

"We recommend them when it makes sense," says Joshua Brooker, an insurance broker in Pennsylvania. "But if you're choosing a short-term plan, you need to understand what's missing."

"They're not for everyone. You have to be healthy," says Ronnell Nolan, president and CEO of the industry association Health Agents of America.

According to KFF, a nonprofit health advocacy organization, such plans are only available in 36 states. Some states, such as California, prohibit them. Others have strict restrictions.

Beware of incomplete medical coverage

There are other types of low-cost health coverage offered by brokers or various organizations.

One option is so-called reimbursement plans. These are not intended to replace primary insurance, but rather to supplement it, helping to cover deductibles or co-pays.

These plans are also not required to comply with ACA rules. They typically pay a fixed amount—for example, a few hundred dollars per day for a hospital stay or a smaller amount for a doctor's visit. This amount is often insufficient, and the patient pays the difference. Furthermore, enrollment typically requires disclosure of pre-existing medical conditions.

Another option is collective health care mutual assistance plans, popular in religious communities. Participants in these programs pool funds to cover each other's medical bills. According to the Commonwealth Fund, these plans are not required to maintain financial reserves, and participants are not guaranteed coverage.

Following the passage of the ACA, such plans expanded beyond religious communities. Like short-term plans, they are less expensive but are not required to comply with the ACA.

"Yes, it's cheaper, and yes, it works for some people," Nolan says. "But you need to be clear about what exactly such a plan provides. For me, it would be the very last option."

Bronze or Disaster Plans: Consider the Franchise

For those who want to remain in the ACA system, the lowest premiums are typically offered by plans in the catastrophic and bronze categories.

Jessica Altman, executive director of the California ACA portal, says the state has seen a noticeable increase in interest in bronze plans. These have low monthly premiums but high annual deductibles—the amount a person must pay out-of-pocket before insurance begins to cover expenses. According to KFF, the average deductible for bronze plans nationally is nearly $7,500.

Another option, new for 2026, is expanded access to catastrophic plans. Previously, these were only available to people under 30. As the name suggests, these plans are designed to cover extreme events, such as cancer or serious injuries from an accident. The deductible for these plans can be up to the ACA's annual out-of-pocket limit: $10,600 for an individual or $21,200 for a family.

Now, even those who are losing their subsidies due to the expiration of expanded tax incentives are eligible for these plans. However, these plans are not available in all regions.

Lauren Jenkins, an Oklahoma broker, says some of her clients with incomes under $25,000 received very low or even free plans this year thanks to expanded subsidies. Next year, their costs could rise to $100 or more per month for a silver plan.

So she offers them "bronze" plans to lower their monthly payment.

"But they might have a $6,000, $7,000, or even $10,000 deductible that they have to pay," Jenkins says. "For someone making $25,000 a year, that could be extremely painful."

Both bronze and catastrophic plans can be combined with health savings accounts, which allow you to save money for medical treatment tax-free. These options are most often used by higher-income families.

An alternative plan may be cheaper.

It's worth comparing options. Sometimes you can find a lower premium simply by choosing a different plan—even from the same insurer. There are different levels of coverage, from bronze to platinum, and prices can vary significantly. In some regions, gold plans are actually cheaper than silver plans, although this may seem counterintuitive.

Additionally, some self-employed individuals with one employee may be eligible for a group plan rather than an individual plan. These plans are sometimes less expensive.

At the same time, ACA rates for small groups (up to 50 employees) vary greatly by region and are not always cheaper than individual policies.

You may be interested in: top New York news, stories of our immigrants and helpful tips about life in the Big Apple - read it all on ForumDaily New York

A few important rules for the end

Experts advise against waiting until the last minute. You can visit the official federal or state ACA website and complete or update an application, including your income and other information, to understand what insurance options are available to you in 2026.

When choosing insurance, it's important to make sure you're on the official ACA website, as there are similar sites that don't offer policies that comply with the law. Healthcare.gov — the official federal portal. From it, you can access the websites of 20 states and the District of Columbia that operate their own ACA portals.

Established websites also direct users to licensed brokers and consultants who can assist with the application process.

And as a reminder, for your insurance coverage to take effect, you must pay the first month's premium.

Read also on ForumDaily:

How to reduce the cost of health insurance in the USA and does it make sense

How immigrants can obtain medical training in the US for free

Exorbitant prices for medical services in the USA: personal experience of a Russian-speaking immigrant

Do you want more important and interesting news about life in the USA and immigration to America? — support us donate! Also subscribe to our page Facebook. Select the “Priority in display” option and read us first. Also, don't forget to subscribe to our РєР ° РЅР ° Р »РІ Telegram  and Instagram- there is a lot of interesting things there. And join thousands of readers ForumDaily New York — there you will find a lot of interesting and positive information about life in the metropolis.