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
ACA health insurance costs in Arizona are heading up again for 2027. The enhanced premium tax credits that held down marketplace premiums from 2021 through 2025 have expired, and the rate requests insurers filed for 2027 are large. Here is where things stand, based on the latest public information, and what you can do before open enrollment.
What Happened to the Enhanced ACA Subsidies
The enhanced premium tax credits were created by the American Rescue Plan Act and extended by the Inflation Reduction Act through December 31, 2025. Congress did not extend them before they expired. In January 2026 the House passed a three-year extension (H.R. 1834) by a vote of 230 to 196, but as of late September 2026 the bill has not passed the Senate and no floor vote is scheduled.
Because the extension has not become law, plan to budget for 2027 as if the enhanced subsidies are not coming back. If that changes, I will update this page.
Arizona 2027 Rate Requests
According to azfamily’s August 2026 report, seven Arizona marketplace insurers asked for 2027 rate increases ranging from 3.26% to 33.90%. These are proposed rates and are still subject to state and federal review, so the final numbers may differ. The same report says 357,144 Arizonans selected marketplace coverage for 2026, down from 423,025 the year before.
What you actually pay depends on your plan, your county, your age, and your income, so one average number does not tell you much. The only reliable way to know is to compare the actual 2027 plans for your household.
Who Is Most Affected
- Households above 400% of the federal poverty level: with the enhanced credits gone, the income cap on premium tax credits applies again, so many middle-income households and early retirees can lose their subsidy entirely.
- Lower- and middle-income households: still qualify for credits, but they cover a smaller share of the premium than they did under the enhanced rules.
Key Dates for 2027 Coverage
Per HealthCare.gov, open enrollment starts November 1. Enroll or change plans by December 15 for coverage that starts January 1. The final deadline is January 15, and plans chosen after December 15 start February 1. Outside that window you generally need a qualifying life event.
What Arizona Residents Can Do Now
- Do not auto-renew without comparing. Your plan’s premium, deductible, and network can all change for 2027 even if the plan name stays the same.
- Update your income estimate. The credit you receive is based on your expected 2027 income, so an out-of-date number can mean a surprise at tax time.
- Check your doctors and prescriptions against each plan’s network and drug list before you choose.
- Look at alternatives. Depending on your health and situation, an off-exchange PPO or another option may fit your budget better than a marketplace plan. Read more on my health insurance page, or see the answers on my Arizona health insurance FAQ.
Get Help Comparing ACA Health Insurance Costs in Arizona
I’m Andy Orlikoff, an independent Arizona health insurance broker in Surprise, AZ. I compare marketplace plans, off-exchange PPOs, and alternatives, and my help costs you nothing.
Call or text: (623) 742-3878
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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.
