Az’s healthcare premiums set to soar on 2026 online marketplace

Arizona insurance officials are warning that those who buy healthcare coverage on the federal Affordable Care Act online marketplace should prepare for sticker shock when they purchase a plan next year.

The Arizona Department of Insurance and Financial Institutions said prices are expected to rise as much as 55 percent next year in an alert issued last week.

The agency said the increases were based on the rising cost of medical care, the impact of the Trump administration’s tariffs and the loss of federal tax credits for middle-class Arizonans who purchase insurance on the exchanges.

The tax credits were expanded by Democrats during President Joe Biden’s administration but were not extended after Republicans took control of Congress and the White House earlier this year.

Arizona Public Health Association Executive Director Will Humble said the main reason for the premium increases was the end of the tax credits.

“There’s a fraction of the premium increases that are due to inflation in healthcare, but the lion’s share, 75 at least percent of the premium increases that people will see, is because they’re losing the advanced premium tax credit,” said Humble, who headed up the Arizona Department Health under former governor Jan. Brewer. “So at least everyone should know why your premium went up so much. It’s because of who was elected to Congress and the presidency.”

Humble said the result would be more people going without insurance or choosing a cheaper plan with fewer benefits, and having more people without insurance would, in turn, lead to more people seeking care in emergency rooms and more uncompensated care for hospitals.

U.S. Rep. Juan Ciscomani’s new communications director, Natalie Turner, did not respond earlier this week to Tucson Sentinel’s emailed inquiries regarding the increased costs as a result of the loss of the subsidies.

The Sentinel attempted to ask Ciscomani about the issue Friday during a press conference held on a dirt hill outside Davis-Monthan Air Force Base but the Republican lawmaker ended the Q&A session after just three questions over seven minutes. The Sentinel was not among the outlets allowed to ask a question.

Ciscomani signed onto legislation this week to extend the tax credits for one year, so they would not expire until after the 2026 midterms, according to a press release from the legislation’s lead sponsor, Republican Rep. Jen Kiggans of Virginia.

Ciscomani’s senior advisor, CJ Karamargin, said the congressman’s office had no comment on the ACA legislation but pointed to a Politico article on the issue.

Marine veteran JoAnna Mendoza, one of several Democrats who hope to challenge Ciscomani in next year’s midterm election, said she was skeptical of Ciscomani’s sincerity in regards to extending the ACA tax credits.

“Juan Ciscomani is a professional in saying one thing and doing another,” Mendoza said. “Just two months ago, he voted to kick thousands of Arizonans off their health care and hike ACA premiums for everyone. Now Ciscomani wants Arizonans to think he’s fighting to lower healthcare costs – even though he’s the reason prices are skyrocketing to begin with.”

Sen. Mark Kelly said he had heard from Arizonans who are worried about their healthcare costs “and now those fears are coming true.”

“With Trump and Republicans doing away with the ACA tax credits, premiums are going up, and many families are being priced out of the coverage they rely on,” Kelly said. ”This fight is far from over, and I’ll keep pushing Republicans to work with us to restore those tax credits and lower health care costs for Arizonans.”