Barbara Brockway and Matt Padula, retired with professional backgrounds in economics and accounting, saw their health insurance premiums jump from $1,600 to $3,200 per month after enhanced Affordable Care Act subsidies expired in 2026, costing them nearly $39,000 more for the year.

Marketplace subsidies phase out at higher income levels, leaving some middle-income enrollees with little or no financial assistance, resulting in higher premiums for some households and a decline in Marketplace enrollment by roughly 1.4 million year over year.

A KFF survey found that roughly 50% of Americans struggle to keep up with healthcare costs, with rising costs leading one in three to defer coverage and 4 in 10 insured individuals worried about affording premiums.

Insurers in 21 states are reducing Marketplace offerings due to uncertainty from the loss of 2026 subsidies, resulting in a 21.7% increase in premiums compared to the usual 2% annual growth, particularly affecting individuals aged 60-64.

Healthcare costs are projected to be one of the biggest expenses in retirement, second only to housing, with retirees at age 65 estimated to need around $165,000 saved for healthcare costs throughout retirement.

To manage healthcare costs, experts recommend strategies like projecting cash flow, building emergency savings, shifting income to qualify for ACA subsidies, updating income projections for more financial help, and shopping around for different plan options.

It is crucial to plan for higher healthcare expenses when retiring before Medicare eligibility, as healthcare costs tend to rise faster than inflation, making expert guidance and exploring Marketplace options essential for financial health.

Read more at Yahoo Finance: This retired Georgia couple’s ACA premium doubled to $39,000 a year after subsidies ended. How to plan for higher costs