why are health insurance premiums going up

Health insurance premiums are going up primarily due to rising healthcare costs involving both higher prices for medical services and increased utilization of those services. Key drivers include inflation boosting wages in the healthcare sector, expensive new medical treatments such as advanced cancer therapies and weight-loss drugs, and hospital/provider consolidation that increases bargaining power and reimbursement rates with insurers. Additionally, the expiration of enhanced premium tax credits at the end of 2025 is expected to increase out-of-pocket premium payments significantly, causing healthier individuals to drop coverage and resulting in a sicker risk pool, which further drives up premiums. Other contributing factors include tariffs on drugs and medical equipment, administrative costs, and policy changes that increase insurer costs. Employers also pass these rising costs to employees through higher premiums, deductibles, and copays. Overall, these factors together are causing the largest premium increases seen in about 15 years with projected increases in the range of 6.5% to 9% in 2026, depending on cost-management efforts by employers and insurers.