Time is Running Out: Navigating the 2026 Health Insurance “Rate Cliff”

Andy | January 19, 2026

It’s January 19, 2026, and if you haven’t secured your health insurance for the year yet, the clock isn’t just ticking—it’s practically screaming. While Open Enrollment for the Health Insurance Marketplace officially closed for most of the country on January 15, a few states (like California, New York, and New Jersey) have extended deadlines through the end of the month.

Whether you missed the deadline or were simply paralyzed by the “sticker shock” of this year’s prices, you aren’t alone. 2026 has brought some of the most significant changes to the health insurance landscape in nearly a decade.

The Perfect Storm: Rate Hikes and Subsidy Cuts

If you logged into the Marketplace this year and saw a premium that looked like a mortgage payment, there’s a reason for it. We are currently facing what experts are calling the “2026 Rate Cliff.”

The Expiration of Enhanced Subsidies: The extra financial help provided by the Inflation Reduction Act expired on December 31, 2025. For many families, this “cancellation” of extra credits means out-of-pocket costs have jumped by 75% or more for the exact same coverage.
Double-Digit Rate Increases: On top of the lost subsidies, insurers have raised base premiums by a median of 18–20% this year, citing rising labor costs in hospitals and the high price of new weight-loss and specialty medications.

For many, the “Affordable” Care Act simply doesn’t feel affordable anymore.

A Flexible Alternative: Short-Term Medical (STM)

If the Marketplace has priced you out, or if you missed the window to enroll, Short-Term Medical plans have become a go-to alternative for 2026.

Unlike the restrictive rules of previous years, many states now allow for extended STM plans that provide up to 3 years of coverage (through renewable 364-day terms).

Why consider Short-Term Medical?

Affordability: Monthly premiums are often 50–80% lower than unsubsidized Marketplace plans.
Speed: Coverage can often start as soon as tomorrow.
Flexibility: You can drop the coverage at any time if a better option (like a new job) comes along.

Note: These plans are best for healthy individuals. Because they are not ACA-compliant, they typically use medical underwriting and may not cover pre-existing conditions or maternity care.

Bridging the Gap with Supplemental Coverage

Because many of the “affordable” plans for 2026—including Bronze and Catastrophic plans—come with very high deductibles, Supplemental Coverage is more important than ever. These plans pay cash directly to you to cover your deductible if the worst happens:

Accident Expense: Covers out-of-pocket costs from ER visits or broken bones.
Critical Illness: Provides a lump sum if you are diagnosed with a major illness like cancer or a heart attack.
Hospital Indemnity: Pays you a set amount for every day you are confined to a hospital bed.

Don’t Go It Alone: Talk to a Local Broker

Navigating the 2026 market is like walking through a minefield. This is not the year to “DIY” your health insurance. A local independent broker is your best resource—and the best part? Their services are usually free to you.

A local broker knows which hospital networks are actually participating in which plans and can help you weigh the risk of a Short-Term plan versus an ACA plan.

How to find a pro:

When you search for a broker in your area, look closely at their Google Reviews. * Are they responsive?

Do they help when a claim gets denied?
Do they actually listen, or are they just “selling”?

A high rating from your neighbors is the best insurance that you’re getting honest advice.