Social Security Recipients Could See Health Insurance Costs Rise in 2026

For millions of Americans living on Social Security, health insurance is one of the biggest monthly expenses.

A new House GOP health care bill is raising concerns that marketplace insurance premiums could rise sharply in 2026, especially if enhanced Affordable Care Act (ACA) subsidies expire at the end of this year.

For retirees and near-retirees on fixed incomes, higher premiums could mean less money for food, rent, and prescriptions.
 

Why this Matters for Social Security Recipients

Many people on Social Security still rely on marketplace health insurance, particularly those who retired early or are not yet eligible for Medicare.

If enhanced ACA subsidies expire, experts warn that premiums could increase by more than 100% on average.

That kind of increase could quickly overwhelm a fixed monthly benefit.
 

How Much Could Premiums Increase?

Health policy analysts estimate that losing enhanced subsidies could raise annual premiums by about $1,000 per person, on average.

For many Social Security recipients, that’s close to an entire month of benefits spread over the year.
 

Who is Most at Risk of Higher Costs?

You may be most exposed to premium increases if you are:

• Receiving Social Security but not yet eligible for Medicare

• Retired early and buying insurance through the marketplace

• Self-employed and purchasing coverage independently

• In a household where one spouse has Medicare and the other does not

• Relying on ACA subsidies to keep premiums affordable

For these groups, marketplace insurance is a non-negotiable monthly expense.
 

Does the Bill Lower Costs Anywhere?

The bill includes changes such as expanding association health plans, which may lower premiums for some people.

However, experts warn these plans often offer less comprehensive coverage and can cost older adults more out of pocket.

Lower premiums do not always mean lower overall health care costs.
 

What this Means for your Social Security Budget

The biggest concern is timing. Health insurance costs often rise faster than Social Security COLAs, creating a squeeze on fixed incomes.

Higher premiums could force tough choices between medical coverage and everyday essentials.
 

What Social Security Recipients Should Do Now

Even though the bill is still under debate, planning ahead is critical. Beneficiaries using marketplace coverage should:

• Review their current premium and subsidy amount

• Confirm when enhanced subsidies expire

• Prepare a backup budget for higher premiums

• Compare plan options during open enrollment

Does this Affect Medicare?

No. The bill does not change Medicare benefits directly.

However, it can still impact Social Security households by raising costs for those not yet eligible for Medicare or covering family members through the marketplace.

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