What's Driving Healthcare Costs Higher for Families

Premium Increases Accelerating

ACA Marketplace premiums are rising 26% on average in 2026, with individual market insurers requesting their largest premium increases in more than five years. A family of four with employer-sponsored coverage contributed $6,296 in premiums and incurred $3,564 in out-of-pocket spending in 2023, with costs expected to rise further in 2026.

What’s Behind the Increases

Healthcare services inflation has been around 3-6.7% annually, driven by rising hospital costs, expensive GLP-1 drugs like Ozempic, and uncertainty around enhanced tax credit expiration. Insurers are absorbing these costs and passing increases directly to families through higher premiums, making healthcare the top household expense worrying the public.

Impact on Different Insurance Types

Cost increases occur across employer-sponsored insurance, marketplace plans, and out-of-pocket spending. For those on ACA Marketplace plans, expiration of enhanced tax credits was expected to increase premiums by over 75%, with some families facing monthly premium rises from $0 to $66, adding $786 annually in out-of-pocket costs.

The Affordability Crisis

Healthcare is increasingly at the center of the affordability crisis, above food, rent, and utilities. Consumers identify healthcare costs as their top financial concern. For households already managing tight budgets, healthcare cost increases force difficult tradeoffs between medical care and other necessities.

References: Eight Trends Shaping 2026 Healthcare Costs | Aca Insurers Are Raising Premiums By An Estimated 26 But Most Enrollees Could See Sharper Increases In What They Pay