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Rising healthcare costs in 2026
As we close out the year Congress is trying to tackle rising healthcare costs and the debate over extending government subsidies is on the table, but what’s causing the surge in costs to begin with? FOX 13’s Political Editor Craig Patrick reports
TAMPA, Fla. - Experts point to several factors behind the surge in health insurance prices, including general inflation, the growing use of high-cost prescription drugs, and consolidation among medical providers.
What we know:
Americans are facing rising health insurance costs. Dan Sacks, a professor at the University of Wisconsin–Madison, notes that when health care costs rise, the burden ultimately falls on consumers: "If the insurance company must pay more for health care, guess who’s ultimately paying for it? You and I are."
Prescription drugs and premiums
One key driver is the popularity of GLP-1 weight loss drugs such as Ozempic, which can cost $800 a month or more. Roughly half of Americans with obesity or diabetes are eligible for these medications.
More doctors are prescribing them to reduce obesity-related illness. That will hopefully reduce medical costs in the long term — but for now, the surge in prescriptions is driving up costs for health insurers, which are passed down.
KFF policy analyst Matt McGough adds that insurers covering these drugs are adjusting premiums upward, increasing costs for everyone.
Provider consolidation and pricing uncertainty
Consolidation among hospitals and clinics gives providers more leverage to negotiate higher rates with insurers, further driving up premiums.
McGough explains, "Monopolization and consolidation of different provider networks… large health care systems taking over local clinics."
Insurance prices are also set with uncertainty around federal laws and tariffs. Providers and insurers factor in projected costs of legislation such as the Trump-era One Big Beautiful Bill Act, and McGough said that adds further volatility to pricing.
Out-of-pocket rising costs
Even beyond premiums, consumers may face higher deductibles and co-pays. KFF research shows that the average deductible for a Bronze plan on Healthcare.gov is rising to around $300.
Some plans also impose stricter caps on out-of-pocket spending, meaning people could pay more for coverage and for care before insurance kicks in.
Why you should care:
Rising health care costs affect every American who relies on insurance. Premiums, deductibles, and co-pays are increasing simultaneously, creating a heavier financial burden while leaving many with less coverage than before.
The Source: This report is based on interviews conducted by FOX 13 Political Editor Craig Patrick, statements from KFF Policy Analyst Matt McGough, as well as research on federal health care policies, insurance trends, and HealthCare.gov plans.