Health insurance cost increases are hitting Arizona residents harder than at any point in the last 15 years. Rising healthcare utilization, expiring subsidies, and carrier withdrawals from the marketplace are all converging to drive premiums significantly higher. Here’s what’s driving the increases and what you can do about it.
According to healthcare.gov, your health insurance is about to get More Expensive—Here’s Why
If it feels like your health insurance costs are always going up, you’re not imagining it. According to a recent survey from Mercer, a consulting firm, health benefit costs are projected to increase by 6.5% in 2026—the highest jump in 15 years. This trend is a wake-up call for both employers and employees, as everyone’s wallets are about to feel the pinch.
What’s Driving the Price Hikes?
The rise in costs isn’t just due to one single factor; it’s a perfect storm of several powerful trends:
- Advances in medical science: New, cutting-edge treatments for things like cancer and chronic conditions are often incredibly expensive. While these therapies offer hope and better health outcomes, their high cost contributes significantly to rising insurance premiums.
- More people using more services: A recent increase in healthcare utilization is also a key factor. This includes people catching up on care they put off during the pandemic and the growing acceptance and use of virtual healthcare, which makes it easier than ever to access a doctor.
- Inflation: The broader economic trend of inflation is hitting the healthcare industry hard. Rising wages for healthcare workers and the increased cost of medical supplies are all passed down to consumers and employers.
How Employers Are Responding
Facing these mounting costs, employers are looking for ways to manage their budgets. The survey found that a growing number of companies plan to make changes to their health plans in 2026. This often means raising deductibles and co-pays, which shifts more of the financial burden directly onto employees.
However, some employers are also exploring new strategies to curb costs without simply making their employees pay more. They are focusing on managing high-cost claims and using high-performance network plans, which guide employees toward a curated list of providers known for quality care and lower costs. At the same time, many companies are still prioritizing employee well-being by expanding access to mental health services.
What This Means for You
For most employees, these changes will mean a higher paycheck deduction for health coverage. On average, employees can expect to see their premium share rise by 6% to 7% in 2026.
This is why your next open enrollment period is more important than ever. It’s crucial to take a close look at all your options. You’ll need to balance the monthly premium with potential out-of-pocket costs like deductibles and co-pays. Choosing a high-performance network plan might seem restrictive, but it could save you a significant amount of money in the long run.
Don’t wait until the last minute. By understanding these upcoming changes, you can make an informed decision that protects both your health and your wallet.
I can help you with options.
Andy Orlikoff 623-742-3878
www.AZhealth.us
Facing significant health insurance cost increases? I compare all your options — ACA marketplace, off-exchange PPOs, short-term plans — at no cost. Call Andy Orlikoff at (623) 742-3878 or fill out the contact form.
Unexpected Medical Bills in Arizona: How Supplemental Coverage Helps
Research shows ACA health insurance costs are projected to rise dramatically for millions of Americans — with some estimates showing increases of 75% or more for those who lose enhanced subsidies. For Arizona residents currently on marketplace coverage, here’s what this means and what you can do about it.
Why ACA Health Insurance Costs Are Rising
The enhanced premium tax credits introduced by the American Rescue Plan significantly reduced ACA health insurance costs for millions of enrollees. Research from multiple policy organizations has found that when those subsidies expire or are reduced, premiums could increase by 75% or more for people in certain income brackets — especially those earning between 400% and 600% of the federal poverty level.
According to KFF research, the expiration of enhanced subsidies would cause the largest premium increases for middle-income enrollees who currently benefit most.
Who Gets Hit Hardest by ACA Premium Increases
Not everyone pays the same ACA health insurance costs. The impact of subsidy expiration varies significantly by income:
- Income below 150% FPL: Often pay $0 with current enhanced subsidies — could face significant premiums if subsidies expire
- Income 200-400% FPL: Currently pay capped premiums — increases could be hundreds per month
- Income above 400% FPL: Already face full unsubsidized premiums — but benchmark plan costs still rising
What Arizona Residents Can Do Now
If you’re facing rising ACA health insurance costs in Arizona, here are your options:
- Check your subsidy eligibility — income changes could mean different subsidy amounts
- Compare off-exchange PPO plans — for healthy individuals without meaningful subsidies, private PPOs may cost less
- Consider short-term medical plans — lower premiums for healthy individuals between coverage periods
- Work with an independent broker — compares all options at no extra cost to you
Free Help Managing ACA Health Insurance Costs in Arizona
I’m Andy Orlikoff, an independent health insurance broker in Surprise, AZ. I help Arizona residents navigate rising ACA health insurance costs — comparing marketplace plans, off-exchange PPOs, and alternatives at no cost to you.
Call or text: (623) 742-3878
Fill out the contact form →
Serving Surprise, Phoenix, Peoria, Glendale, Goodyear, Scottsdale, Mesa, Chandler, Gilbert, and all of Arizona.
American Insurance Benefits | 14955 W Bell Rd #8031, Surprise, AZ 85374 | Licensed Arizona Insurance Broker since 2004
Finding affordable health insurance in Arizona can feel overwhelming — especially if you earn too much for meaningful ACA subsidies but too little to absorb full-price premiums. Allstate Health Access and similar health access plans offer one alternative worth understanding. Here’s what they are, what they cover, and how they compare to traditional insurance.
As healthcare.gov notes, in a world full of “what ifs,” healthcare can often feel like a puzzle. “What if I get sick or injured?” or “What if unexpected costs arise?” are common concerns that can leave us wondering about our coverage. Allstate Health Access aims to address these worries with its fixed-benefit insurance plans, offering an affordable and predictable way to manage everyday healthcare expenses.
What is Allstate Health Access?
Allstate Health Access provides fixed-benefit insurance, meaning you choose a set dollar amount upfront, and they’ll pay covered expenses for that plan year. A key advantage is that there are no deductibles or copays; you simply cover any costs above the chosen dollar amount. This approach makes managing healthcare costs more predictable.
While Allstate Health Access is most effective when combined with a major medical plan, it can also serve as minimum coverage if a major medical plan isn’t an affordable option. This flexibility allows you to get coverage at a cost that suits your budget.
Key Benefits and Features:
Predictable Payments: You know exactly what your plan will pay for various services, including office visits, lab tests, and hospitalization. Plus, premium rates are guaranteed for three years on all plans.
Short Waiting Periods: You get immediate benefits for injury and sickness, with a 90-day waiting period for preventative care.
Adult and Child Options: Coverage is available for all ages up to 65, with child-only plans also offered in most states.Flexibility and Renewability: You can apply anytime, and plans auto-renew, with some benefits increasing annually.
No Maximums: There are no annual or lifetime maximum caps on benefits.
First Health Network Access: Allstate Health Access plans provide access to the First Health Network, which includes 5,300 hospitals, 100,000 ancillary facilities, and 695,000 doctors and healthcare providers, offering discounts on covered services. There are no penalties for seeing out-of-network providers; the plan pays the same dollar amount regardless.
Recuro Health Virtual Care: Members have access to 24/7 virtual urgent care with zero out-of-pocket costs for conditions like colds, flu, and rashes.
Recuro Health Prescription Benefit: This includes a $0 copay for chronic conditions and urgent care medications, accepted at over 65,000 retail pharmacies nationwide. It offers a prescription benefit card, medication delivery, a national pharmacy network, and an easy-to-use member portal.
Understanding How the Plan Works:
Allstate Health Access plans pay set benefits for covered services. For example, for a preventative office visit, if the total cost after a network discount is $268.00, a Core plan might provide a total benefit of $185.00, leaving you with a balance of $83.00. For a Plus plan, the total benefit might be $235.00, resulting in a $53.00 balance.
Similarly, for a rotator cuff surgery with a total cost of $9,360.00 after a network discount, a Core plan could offer a total benefit of $6,500.00 (covering surgery, assistant surgeon, anesthesia, and ambulatory surgical center benefits), leaving a balance of $2,860.00. A Plus plan might provide an $8,500.00 total benefit, reducing your balance to $860.00
For more details and a quote just reach to me:
Andy Orlikoff
623-742-3878
www.AZhealth.us
Looking for affordable health insurance in Arizona? I compare all your options — ACA marketplace, PPO plans, short-term coverage, and supplemental plans — at no cost to you. Call Andy Orlikoff at (623) 742-3878 or fill out the contact form.
