My Health Insurance Went Up 20%!

Healthcare Confusion Isn't Your Fault

Every year around this time, I get emails from people feeling stupid about health insurance decisions. "I don't understand deductibles vs. premiums." "How do I know which plan is right?" "What if I choose wrong and it costs me thousands?"

Here's what I want you to know: If healthcare decisions feel overwhelming and confusing, that's because they ARE overwhelming and confusing. This isn't a reflection of your intelligence. It's a reflection of a deliberately complicated system.

But this year, there's something you need to know that makes the decision even more urgent.

The 2026 ACA Situation

The enhanced ACA subsidies that have been keeping premiums lower? They weren't restored in the recent government shutdown resolution.

What this means for you:

Prices are going up. If you're currently on an ACA plan or considering one, expect significantly higher premiums for 2026. The subsidies that were cushioning costs are almost certainly not coming back, at least not by January 1st.

The window is short. Open enrollment closes December 15th. If you need coverage starting January 1st, 2026, you must enroll by then. Miss that deadline, and you're looking at February 1st as your earliest start date.

Where to go: Healthcare.gov (or your state-specific ACA portal if your state runs its own exchange).

What This Means for Financial Independence

Healthcare costs are one of the biggest obstacles to financial independence, especially for late starters considering early retirement or career transitions.

I know this firsthand. I'm currently using an ACA plan for myself and my two daughters. It's been essential for bridging the gap between employer-sponsored healthcare and Medicare at 65 - exactly the kind of coverage early retirees need.

In the last few years, with the enhanced subsidies, these plans have been remarkably affordable. But I just renewed for 2026, and here's the reality: my plan is going up about 20% from last year.

So when you log in to compare plans this week, brace yourself for sticker shock. The prices you see will likely be significantly higher than what you're paying now. That's not a mistake. That's the new reality without the subsidies.

Don't Let Sticker Shock Paralyze You

Here's my straight talk on this:

Don't let perfect be the enemy of good enough. Yes, premiums are going up. Yes, it's frustrating. Yes, the system is broken. But going uninsured or missing the enrollment window creates far bigger financial risks than choosing an "imperfect" plan. Without health insurance, one major health event can wipe out all your hard-earned progress.

The 3 Questions That Actually Matter:

1) What's my realistic maximum out-of-pocket exposure? This matters more than the monthly premium for most people. The book describes creating a healthcare emergency fund, and how much you have in it would help decide this question.

2) Do I have specific doctors/medications I need covered? Check the networks and formularies first. If you absolutely have to have a particular expensive medicine or doctor, make sure it is covered.

3) Can I handle a high deductible if it saves significant monthly premium? Be honest about your emergency fund situation here as well.

Everything else is noise. Make the best decision you can with the information you have by December 15th.

Your Action Step This Week

If you're on ACA or considering it:

1) Go to www.Healthcare.Gov

2) Compare 2-3 plan options based on those three questions above.

3) Expect prices 20-100% higher than 2025, depending on your income.

4) If needed, there are healthcare agents that can help you choose, at no cost to you.

5) Make your selection before December 15.

6) Done. Move on with your life.

Don't overthink it. Don't agonize. Choose the best option available and make it work.

Financial independence isn't about making perfect decisions. It's about making good-enough decisions consistently and not letting fear or confusion keep you stuck.

You've got this.

Tim