Premiums Rise, Employers Trim Benefits in 2026

Health insurance premiums are expected to rise in 2026, and employers are already trimming worker benefits in response. In the U.S., millions who buy individual-market coverage face large premium hikes next year unless Congress extends enhanced pandemic-era premium tax credits, which experts warn would shift hundreds to thousands of dollars in extra costs onto families and strain state safety nets. Minnesota officials, led by Gov. Tim Walz, say losing the credits and proposed federal cuts could raise individual market rates by over 16% (nearly 13% for small groups), averaging about $147 more per month and disproportionately harming rural communities and small businesses. New Mexico health officials also warn of premium spikes in 2026 tied to heavy 2024 usage, signaling multi-state affordability pressure. Separately, employers — including Malaysian MSMEs — are cutting benefits such as dental, optical and dependent coverage, switching to basic policies or higher co-pays to control costs and raising concerns about access for vulnerable workers.