Obamacare costs rise, making public healthcare unaffordable for many

Millions of Americans shopping for health insurance through the Obamacare/Affordable Care Act marketplace are facing higher premiums, fewer plan options, and stricter eligibility rules as open enrollment for 2027 begins, The Associated Press reports. The enrollment period started on Nov. 1 in most states and will continue through Jan.

15. According to The Associated Press, benchmark health insurance premiums are expected to rise by an average of 13% in 2027, based on an analysis of federal data by the health policy research group KFF. Those higher costs come after the expiration of enhanced federal subsidies that were introduced during the COVID-19 pandemic under former President Joe Biden.

Republicans opposed extending that aid, which had helped millions of Americans afford coverage. KFF says marketplace plan selections dropped by 1.2 million in 2026 after those subsidies ended. People who no longer qualify for financial help are likely to feel the impact most sharply.

Many may have to move to lower-cost bronze plans, which usually come with higher out-of-pocket expenses, or drop coverage altogether. Cynthia Cox, a KFF vice president and director of its Affordable Care Act program, said the premium increases are being driven largely by rising medical costs and greater hospital market concentration. These financial pressures are arriving as enrollment continues to fall.

As of February 2026, about 19.2 million Americans had active ACA marketplace coverage, down 2.6 million from the year before, according to KFF. More changes are set to begin in 2027, including restrictions on premium tax credits for certain lawfully present immigrants. The Congressional Budget Office estimates those changes could leave another 1 million people uninsured by 2035.

At the same time, the Trump administration has stepped up its efforts to crack down on alleged enrollment fraud. In September, Vice President JD Vance announced that about 760,000 people had been removed from ACA exchanges over suspected fraudulent enrollments. The administration said the move would save the federal government $2.2 billion.

Even with prices rising, the Centers for Medicare and Medicaid Services says consumers will still have access to affordable coverage options. Still, health policy experts caution that higher premiums, reduced financial assistance, and tighter eligibility rules could push even more Americans out of the insurance marketplace in 2027. RELATED CONTENT: 1 in 4 Workers Feel Trapped In Jobs They Don’t Like Because of Health Insurance: Survey