Health Costs Explode Under Trump’s Big Ugly Law

July 28, 2025

The recently signed "Big Ugly" legislation will cause health insurance premiums to increase significantly in 2026, with a projected median spike of 15% nationwide according to KFF and the Peterson Center on Healthcare. A key factor driving this increase is the termination of enhanced premium tax credits that currently help over 24 million Americans afford health coverage, resulting in individual premium payments rising by more than 75% on average for subsidy recipients. Additionally, Trump's tariffs on imported goods including pharmaceuticals are compelling insurers to increase premiums beyond medical inflation rates.

Who is affected

Over 24 million people who currently receive enhanced premium tax credits
Low-income Americans
Black and Hispanic adults, uninsured individuals, and people in poor health
Working class, poor, and those not protected by extreme wealth
All individuals in the ACA marketplaces facing premium increases

What action is being taken

Insurers across the country are implementing steep rate hikes for 2026
Insurance companies are filing for premium increases, with more than a quarter seeking increases of 20% or more
Carriers including UnitedHealthcare, Optimum Choice, and others are citing tariffs as justification for additional rate hikes of 2.2% to 3.6%

Why it matters

Individual premium payments will increase by more than 75% on average for those receiving subsidies
Nearly 30% of U.S. adults already delay or skip medical, mental health, or dental care due to cost
About 16% of Black adults report trouble paying medical bills
The U.S. already spends more on healthcare per person ($13,432 in 2023) than other wealthy nations while Americans are more likely to go into debt for care
As healthier individuals exit the insurance market, the remaining risk pool becomes sicker and more expensive, creating a cycle of further premium increases

What's next

No explicit next steps stated in the article

Read full article from source: The San Diego Voice & Viewpoint