Rising ACA Premiums Drive Consumers to Drop Health Insurance

A recent survey by health policy organization KFF highlights that rising premiums for Affordable Care Act (ACA) plans are prompting some U.S. consumers to forgo health insurance. Approximately 10% of last year's ACA plan holders are now uninsured, a shift linked to the elimination of enhanced federal subsidies earlier this year, which has resulted in significant premium increases.

The KFF survey, which involved 1,117 former ACA plan subscribers, aimed to gauge the impact of cost hikes on participants. Findings revealed that 69% remain with ACA insurance, 9% are now uninsured, and 22% switched to other coverage options such as employer-sponsored plans or Medicare. The primary reason cited for leaving ACA policies was cost.

Cynthia Cox, Senior Vice President at KFF, noted in The Wall Street Journal that these trends align with forecasts of reduced coverage rates. Current ACA policyholders face elevated expenses, not just in premiums, but also in co-pays, coinsurance, and deductibles. Moreover, 17% of enrollees are uncertain about maintaining premium payments throughout the year, potentially leading to further drops in coverage.

In an attempt to retain health insurance, many families have tightened budgets, with over half cutting back on essential spending like groceries and clothing. Alarmingly, 4% of ACA policyholders have yet to make any premium payments this year, though they remain covered under a 90-day grace period. Kelly Rose, a policyholder from Florida, abandoned her ACA coverage after premiums soared to $1,700 monthly, exceeding her mortgage costs. She now sources medication from Canada, where it's more affordable than in the U.S.

ACA enrollment patterns are also evolving. Although more than 20 million individuals had ACA coverage last year, 2026 figures show 23 million enrollments, a decrease from 24.2 million the previous year. Experts indicate that rising costs may particularly deter younger, healthier populations from enrolling. In response, companies like CVS Health’s Aetna have withdrawn from the ACA insurance sector. The future of ACA subsidies is expected to become a key issue in upcoming political discussions.