Trump’s Budget And Tariffs Fuel 15% Hike In Health Insurance Premiums
Key Takeaways
Individual coverage under the Affordable Care Act could jump 15% for 2026 thanks to policies pushed by the Republican Congress and the Donald Trump White House.
Article Overview
Quick insights and key information
4 min read
Estimated completion
investment
Article classification
July 18, 2025
05:00 AM
Forbes
Original publisher
From what the evidence shows, I find it compelling that InnovationHealthcareTrump’s Budget And Tariffs Fuel 15% Hike In Health Insurance PremiumsByBruce Japsen, Senior Contributor
Forbes contributors publish independent expert analyses and insights
Bruce Japsen writes healthcare and policy (this bears monitoring)
AuthorJul 18, 2025, 05:00am EDTJul 18, 2025, 05:58am EDTIndividual coverage under the Affordable Care Act could jump at least 15% for the 2026 benefit year, given the current landscape
Furthermore, More thanks in part to policies pushed by the Republican Congress and the Donald Trump White House, according to a new analysis from KFF and the Peterson Center on Healthcare
In this photo, Trump bangs a gavel after signing the "One, Big Beautiful Bill" Act into law during an Independence Day military family picnic on the South Lawn of the White House on July 04, 2025 in Washington, DC
The bill makes permanent President Donald Trump’s 2017 tax cuts, increases spending on defense and immigration enforcement and temporarily cuts taxes on tips, while cutting funding for Medicaid, food assistance and other social safety net grams. (Photo by Alex Brandon - Pool/Getty Images)Getty Images The cost of individual coverage under the Affordable Care Act could jump at least 15% for the 2026 benefit year thanks in part to policies pushed by the Republican Congress and the Donald Trump White House, according to a new analysis
Health insurers that sell individual coverage under the ACA, also known as Obamacare, are posing median premium increases of 15% for 2026, the analysis released Friday by KFF and the Peterson Center on Healthcare shows (remarkable data)
This analysis suggests that would be the biggest percentage increase in individual premiums under the ACA since 2018 during Trump’s first term in office (remarkable data). “Based on the early indications, individual market insurers will introduce the largest hike in premiums since 2018, the last time policy uncertainty contributed to sharp premium growth,” of the analysis wrote
Reers blamed the “scheduled expiration of enhanced tax credits and the impact of tariffs” as key reasons health insurance premiums are on the rise
At the same time, Trump earlier this month signed into law legislation that cuts $1 trillion from Medicaid and ACA plans that is expected to eliminate coverage for nearly 12 million Americans over the next decade, data from the Congressional Budget Office shows
In the individual market, millions more Americans face the possibility of losing coverage because the legislation written by Republicans in Congress doesn’t extend tax credits signed into law by former President Joe Biden beyond this year
As the bill Trump signed into law takes effect, the reduced spending on these tax credits, or subsidies, means buyers of ACA plans will face higher premiums and out-of-pocket costs
On the other hand, MORE FOR YOU “Enhanced premium tax credits that make coverage more affordable will expire at the end of 2025, driving up out-of-pocket premium payments by over 75% on average,” reers wrote in the analysis released Friday, considering recent developments. “This's expected to cause healthier enrollees to drop their coverage and create a sicker risk pool, in this volatile climate. ” In addition, Trump’s tariffs on “some drugs, medical equipment, and supplies
Could increase premiums by an average of 3% more than they otherwise would have,” reers wrote
Health insurers that sell individual coverage have already been telling Wall Street analysts and investors that they will be raising rates for 2026 given rising healthcare costs and new policies from the Trump administration (this bears monitoring), amid market uncertainty
Nevertheless, Moreover, Individual coverage under the ACA, in particular, has triggered several health insurers, including Centene, Molina Healthcare, Elevance Health and others to lower their fit forecasts for the rest of 2025
To cover the rising costs of care of the population buying individual coverage, these carriers are planning to raise rates (which is quite significant)
Health insurers warned of steep rate hikes as they tried to convince Congress not to apve Medicaid cuts and reduced spending on tax credits to buy individual coverage, in today's financial world
Additionally, Meanwhile, “Due to new red tape and barriers to enrollment and re-enrollment, people losing eligibility for Medicaid will find an individual market with less choice and higher premiums,” the trade group and lobby America’s Health Insurance Plans (AHIP) said last month (noteworthy indeed), in light of current trends
Meanwhile, AHIP represents some of the biggest viders of individual coverage including Centene, Oscar Health, Elevance Health, Cigna and an array of Blue Cross and Blue Shield plans, given the current landscape
Editorial StandardsRes & PermissionsLOADING PLAYER, amid market uncertainty.
Related Articles
More insights from FinancialBooklet