Rising health care costs are about to hit millions of Americans hard. Personal finance expert Suze Orman is sounding the alarm as temporary Affordable Care Act subsidies are set to expire in 2026 — a change that could cause premiums to jump by more than 75%, according to KFF.
Orman warns that households need to start preparing now, calling health insurance "an emergency" expense that should not be ignored.
ACA Subsidies Set to Expire
Since 2021, enhanced federal tax credits have lowered premiums for ACA marketplace plans. According to the KFF, a non-partisan research organization that specializes in health care issues, families saved an average of $706 a year. The subsidies also expanded eligibility, giving millions of middle-class families access to more affordable coverage.
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That relief ends in 2026. Congress eliminated the advanced premium credits in the "Big Beautiful Bill" passed in July. Once the subsidies expire, premiums could more than double in some states, according to Orman’s blog.
Who Will Be Affected?
While those with employer-sponsored insurance may assume they're safe, Orman stresses that anyone could be affected by future job changes, early retirement, or shifts to gig work.
- Job loss or retirement before Medicare eligibility: Workers who leave their jobs may find ACA plans are their only option. COBRA coverage can extend employer insurance temporarily, but it requires paying the full premium plus administrative fees, making it a costly stopgap.
- Entrepreneurs and gig workers: Without employer coverage, the ACA marketplace often serves as the primary source of health insurance for these workers.
- Young adults turning 26: Children can remain on a parent's plan until age 26. After that, they must secure their own coverage, often through ACA plans.
Without subsidies, each of these groups faces significantly higher costs.
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Why Dropping Coverage Is Risky
Orman cautions that rising premiums may lead some to consider dropping their coverage. But going uninsured can leave households exposed to catastrophic medical bills. Even healthy individuals are at risk of unexpected accidents or illnesses.
"Not having health insurance is an emergency," Orman wrote, urging people to view it as non-negotiable. The financial strain of paying out-of-pocket for medical care can be far greater than the challenge of budgeting for higher premiums.
Steps To Take Now
With more than a year before the subsidy changes take effect, Orman recommends households take time to prepare:
- Review your budget: Look for areas to cut expenses so higher premiums can be absorbed.
- Build your emergency fund: Savings can help cover rising health costs, especially if income drops unexpectedly.
- Plan for dependents: Parents and grandparents should talk with young adults about upcoming changes and help them research affordable coverage options.
- Stay informed: Premium adjustments vary by state, and final figures will be announced closer to 2026.
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A Call To Prepare
Healthcare costs have long been a source of financial stress for Americans, and the expiration of ACA subsidies could push millions to reconsider their coverage. Orman's message is clear: plan ahead, budget carefully, and do not treat health insurance as optional.
For those approaching retirement, considering a career change, or supporting young adults, now may be the time to start building financial flexibility to handle what's coming.
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