Individuals relying on the leading marketplace insurance plans in most states should prepare for significant rate hikes this fall, as revealed by data from Senator Maria Cantwell’s office. Cantwell, a Democratic senator from Washington, has called on congressional leaders and former President Donald Trump to address the impending expiration of health care subsidies. The senator released a report highlighting expected rate increases from insurers across the country, with 29 states facing at least a 20 percent rise next year.
The primary concern centers around the potential expiration of health subsidies. These subsidies, which Congress expanded during the COVID-19 pandemic to assist individuals earning above 400 percent of the federal poverty level, are due to expire on December 31 without congressional intervention. In anticipation of this lapse, insurers are adjusting their rates for 2026.
In Washington state, for instance, Coordinated Care Corporation plans to raise their rates by nearly 27 percent. The Washington state Office of the Insurance Commissioner has already approved an average rate hike of 21 percent, marking the most substantial increase in premiums since 2018. This adjustment would mean an additional $132 monthly, or $1,585 annually, for Washington residents.
Cantwell has addressed a letter to Trump, along with leaders from both political parties, stressing the urgency of the situation. She highlighted the importance of extending the enhanced Affordable Care Act (ACA) premium tax credits to prevent these significant increases from being “locked in” for the coming year.
The open enrollment period for individual marketplace health care will commence on November 1, at which time Americans will be informed of their 2026 premiums. Arizona faces one of the most substantial rate increases, with Arizona Complete Health potentially raising rates by nearly 49 percent.
Although members from both sides of the political spectrum recognize the need to extend the tax credits, Democrats, including Cantwell, are advocating for an extension to be included in a temporary funding bill. Some Republicans intend to address the subsidies in future funding packages, while others oppose renewing the expanded subsidies altogether. Speaker Mike Johnson, a Republican from Louisiana, has urged Democrats to pass a straightforward continuing resolution to keep the government functioning, indicating that any failure to do so would be their responsibility.
This situation underscores the importance of timely legislative action to support affordable health care and prevent financial burden on American families.