Rising health insurance costs: Americans opt for cheaper plans or go uninsured in 2026

Many Americans are struggling to keep up with rising health insurance costs and early numbers show that more people are either switching to cheaper Obamacare plans or considering going without coverage in 2026. These signs are coming from several states that shared their first round of open enrollment data this week.

The concern is tied to the end of enhanced federal subsidies, which are set to expire on Dec. 31. These subsidies helped millions of people keep their monthly premiums low over the last few years. Now, without them many families are facing steep price increases.

Jessica Altman, the executive director of Covered California, said in a statement shared through the state marketplace that early trends show “warning signs,” and many shoppers are having a hard time paying higher premiums.

States like New York, Pennsylvania, Idaho, Colorado, and California are already reporting slower sign ups compared to this time last year.

Pennsylvania’s state marketplace, Pennie says first time sign ups are down by about 20%. Devon Trolley, the marketplace’s executive director said that around 40,000 people have already dropped their plans, compared to 19,000 during the entire enrollment period last year.

In Idaho, officials are seeing more people choosing bronze plans. Which come with lower monthly premiums but higher deductibles. Pat Kelly, director of Your Health Idaho, told reporters that the shift toward bronze plans is a clear sign of financial stress.

California reported a drop of more than 30% in sign ups compared to this time last year. The state is also seeing a big move toward cheaper bronze plans.

New York officials said enrollment is about 8% lower right now and many residents appear to be experiencing “sticker shock” while comparing 2026 prices.

Earlier this week, the U.S. Senate voted against a bill that would have extended the enhanced subsidies for another three years. Without those subsidies, millions of Americans will likely face double digit premium increases.

Ellen Montz, former senior official at the Centers for Medicare and Medicaid Services (CMS), said that this year’s enrollment period is “unlike any we have ever experienced.” She also said that many people may be waiting to see what happens before finalizing their plans.

Experts worry that many Americans may sign up now but drop their coverage in early 2026 if they cannot keep up with the premiums. Trolley, the Pennsylvania marketplace director, said we may see “big drop offs in February and March.”

Open enrollment runs through Jan. 15, 2026, but anyone who wants their coverage to start on Jan. 1 must select a plan by Dec. 15.