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FOX 13’s Craig Patrick explains what is causing the steep hikes in home and car insurance.
Premiums for 2026 are projected to rise at the fastest pace in at least five years.
A KFF analysis found that marketplace plans under the Affordable Care Act (ACA) will see the steepest hikes.
If enhanced ACA premium tax credits expire at the end of 2025, many families will pay far more out of pocket.
What’s driving the increases?
What we know:
Lagging inflation in health care: Overall inflation peaked three years ago, but health care costs typically rise more slowly, then catch up later.
Health labor shortages: Hospitals and clinics are paying more to recruit and retain staff, passing those costs on to patients and insurers.
Provider consolidation:
- Matt McGough, KFF policy analyst:“Monopolization and consolidation of different provider networks. Large health care systems are taking over local clinics.”
- Weight-loss drugs like Ozempic:Dr. Peter McCullough, cardiologist:“Half of Americans are eligible for Ozempic-like drugs with obesity and diabetes.”These drugs cost around $800/month per patient and are driving up insurer expenses.McGough: “Some of them that are choosing to cover these drugs are setting their premiums at a higher rate than we would otherwise see.”
- Dr. Peter McCullough, cardiologist:“Half of Americans are eligible for Ozempic-like drugs with obesity and diabetes.”
- These drugs cost around $800/month per patient and are driving up insurer expenses.
- McGough: “Some of them that are choosing to cover these drugs are setting their premiums at a higher rate than we would otherwise see.”
- Potential Trump administration tariffs:Proposed tariffs on imported prescription drugs and medical devices are impacting 2026 premiums.
- Proposed tariffs on imported prescription drugs and medical devices are impacting 2026 premiums.
What we don’t know:
Whether Congress will renew enhanced ACA subsidies before they expire.
If proposed tariffs on drugs and devices will actually take effect—or change under negotiations.
How insurers will adjust coverage of expensive new drug categories in 2026.
By the numbers
- 9%: Average projected increase for employer-sponsored health plans.
- 20%: Average projected increase for individual ACA marketplace plans.
- 75%: Potential additional increase for consumers if ACA subsidies expire.
- $800+/month: Cost of GLP-1 weight-loss drugs like Ozempic.
Why you should care:
Gallup polling shows satisfaction with the U.S. health care system hit a 24-year low in 2024, with costs cited as the leading problem.
The 2026 hikes could force many families to shop for cheaper coverage or drop insurance altogether.
READ: Shrimp at over 20 Tampa Bay restaurants being re-tested after falsely claiming Gulf shrimp was being served
What’s next:
The next open enrollment period for ACA marketplace plans begins in November 2025.
Congress would need to act before the end of the year to extend subsidies.
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The Source: Information for this story was gathered by FOX 13’s Craig Patrick.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.