Americans navigate ‘wild West’ of health insurance options after dropping Obamacare plans
XLV•About 3 million Americans dropped Affordable Care Act marketplace coverage after premiums and deductibles rose sharply at the start of 2026. Insurers have proposed a median premium increase of about 15% for 2027, while some former enrollees are turning to short-term plans, health-sharing programs or going uninsured.
1. Coverage changes
About 3 million Americans left the Affordable Care Act marketplace after costs rose sharply at the start of 2026, partly because enhanced COVID-era premium tax credits expired. The plans covered 19.2 million people as of February. Several people interviewed said they switched to less comprehensive short-term plans or health-sharing programs, or went without insurance.
2. Cheaper alternatives
Ryan Shapiro said his ACA premium was set to more than double to over $1,000 a month, so he chose a short-term plan costing roughly $600 that covers hospitalization and critical illnesses. Health-sharing member Cristin Connelly pays $480 a month for herself and her children, but her program requires a minimum $5,000 spend before expenses can be submitted for sharing.
3. Care and protections
Some people interviewed said they postponed or skipped preventive care and treatment because of premiums and deductibles. Hospitals have flagged rising costs from treating uninsured patients. Experts warned that health-sharing arrangements and other non-traditional products can have significant limitations and that some states do not adequately police their marketing.
