Most Americans are likely to face higher monthly costs for health insurance in the coming year, regardless of whether they get coverage through their jobs, the Affordable Care Act (ACA) marketplace, or Medicare. These increases are among the largest in decades and are driven by rising costs for medical care, hospital services, and the growing use of expensive prescription drugs, including GLP-1 medications used for weight loss. The impact of these rising costs varies depending on the type of insurance coverage a person has. Those who purchase insurance through the ACA are expected to see the second consecutive year of double-digit premium increases. Insurers offering ACA plans are proposing an average increase of about 15% for 2027, according to an analysis by the Kaiser Family Foundation (KFF). In 2026, the average increase was 20%. For someone earning $80,000 a year who doesn’t qualify for standard subsidies, the cost of a bronze-level plan could rise by about $80 per month, adding nearly $1,000 annually to their expenses. These increases were partly due to the expiration of enhanced federal subsidies at the end of 2025, which led to a decline in ACA enrollment by about 3 million people, particularly among young adults. The White House announced plans to issue $500 rebate checks to approximately 1 million ACA enrollees, claiming they were overcharged. However, it remains unclear where the money for these rebates would come from or whether Congress would need to approve the distribution. Experts suggest that the rebates are unlikely to significantly ease the financial burden on most enrollees. Workers with employer-sponsored insurance may also see increased costs as employers face rising health care expenses. According to a survey by Marsh, the average cost for employers to provide health benefits to each employee is expected to rise by 8.2% in 2027, the largest increase since 2003. Employers may pass on some of these costs to employees through higher premiums, larger deductibles, or reduced wage increases. For Medicare beneficiaries, changes to prescription drug coverage are expected. The Centers for Medicare & Medicaid Services (CMS) projects that the monthly cost for Part D coverage will rise about 6% in 2027, from $38.99 to $41.33. This increase is due to the Trump administration’s decision to withdraw support for a temporary federal program that helped reduce premium costs. Without that program, premiums would have nearly doubled, according to the Government Accountability Office. However, Medicare enrollees will still have an annual cap on out-of-pocket costs for prescription drugs, set at $2,400 in 2027.