The nation’s health insurers have raised prices to boost profits while bracing for losses of customers who can’t afford more expensive coverage.
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The nation’s health insurers have raised Obamacare prices to boost profits while bracing for losses of customers who can’t afford more expensive coverage.
American consumers this weekend began considering health insurance options for 2026 with open enrollment underway for individual coverage under the Affordable Care Act, also known as Obamacare. And what they’re seeing are big price increases from health insurers generally in the “20-25%,” range, according to an analysis of major publicly traded health insurers, though some are as high as 100% or even 300%, some the media reported.
The price increases by health insurers come amid a federal government shutdown that has entered its fourth week. And extending tax credits beyond this year that would provide some relief from price hikes for millions of Americans is at the center of a standoff between Republicans who control Congress, who are largely opposed to the subsidies, and Democrats who support them.
Without the tax credits, health insurers are bracing themselves for a loss of customers, executives have told Wall Street analysts and investors over the past two weeks as they report third-quarter earnings.
“We’re supporting a population that is looking down at the (enhanced premium tax credit) expiration and possibly the wholesale loss of affordable health care coverage next year,” Sarah London, CEO of health insurer Centene, said last week as she discussed the company’s third-quarter earnings on a call with analysts.
Centene is the nation’s largest Obamacare provider with 5.8 million subscribers in Ambetter brand health plans.
“Overall, premium increases are broadly in the 20-25% range due to 2025 austerity pressure and the expiry of (enhanced premium tax credits) in 2026,” analysts at Barclays wrote last week.
Meanwhile, health insurers have pulled back from selling individual coverage under the ACA, also known as Obamacare, to help improve their bottom lines.
“The overall number of plans decreased in 2024 and 2025 due to the move away from bronze offers and the exit of several financially distressed carriers in 2024,” said the Barclays report published last week. “In 2026, plan offerings declined by a similar level to 2025 due to CVS’s planned exit from the market and reductions by the market leader (Centene).”
UnitedHealthcare, the nation’s largest health insurer and a unit of health care giant UnitedHealth Group, has 1.7 million Obamacare enrollees but expects to lose two-thirds of them.
“Where we cannot come to an agreement on sustainable rates, we are implementing targeted service area reductions,” UnitedHealthcare CEO Tim Noel told analysts during a call last week to discuss the company’s third-quarter earnings. “We believe these actions will create a sustainable premium base — while likely reducing our ACA enrollment by approximately two-thirds. These actions will lead to improved employer and individual segment margin in 2026 — although still below our targeted 7-9% range.
While it remains unclear when and if Congress will reach a deal to reopen the government and extend the tax cuts, health insurance executives are holding out hope.
“The congressional dialogue around (enhanced premium tax credits) has obviously gained traction in recent weeks, but the outcome remains uncertain,” London said. “While our products are priced to support year-over-year margin improvement in the scenario where (enhanced advance insurance tax credits) expire, we believe these small business tax credits provide critical support for rural infrastructure. And we hope that the Congress can find a way forward.”
