Rising ACA Premiums and the New HSA Opportunity for 2026

This week’s insight looks at a troubling headline from last week and the “bronze” lining that many small business owners should focus on.

On October 24, it was announced that health insurance premiums for Affordable Care Act (ACA) Marketplace plans will rise 30% in 2026, the largest increase since 2018. That’s a shocking jump, but as with many headlines, there’s more to the story.

The increase will likely hit hardest for individuals and families who depend on subsidies. While costs are going up across the board, the main driver of the spike is the expiration of pandemic-era ACA subsidies. How this plays out depends largely on the outcome of the ongoing government shutdown. It’s just my speculation, but if lawmakers strike a deal, that 30% figure could drop significantly.

For small business owners who buy coverage through the ACA Marketplace, the premium surge might not be as severe, especially if they have not been receiving subsidies. What’s more, a new rule taking effect next year could open the door to lower premiums and higher retirement savings.

Under the One Big Beautiful Bill Act (OBBBA), starting January 1, 2026, Bronze and Catastrophic ACA Marketplace plans will qualify as high-deductible health plans (HDHPs) for Health Savings Account (HSA) eligibility. Previously, Bronze plans that were not designated as HDHPs did not qualify for HSAs. That often pushed individuals or families toward Silver plans, which carried higher premiums. Of course, Bronze plans have higher deductibles and out-of-pocket maximums than Silver plans, but now they can be linked to HSAs’ valuable tax advantages.

The new law also relaxes several HSA-related rules. For example, direct primary care fees and certain telehealth services will become HSA-eligible expenses.

HSAs remain one of the most tax-efficient long-term investment vehicles. Contributions are tax-deductible, growth is tax-free, and withdrawals for qualified expenses are also tax-free. There is even a fourth benefit: if you contribute through payroll, you avoid FICA taxes as well. If you’re lucky enough to not have to use HSA money for health issues, the account becomes like an IRA after age 65—you owe ordinary income tax on distributions for non-qualified reasons.

For 2026, contribution limits rise to $4,400 for individuals and $8,750 for families.

While some Americans will face higher monthly premiums next year, small business owners and anyone buying through the ACA Marketplace might consider switching to a lower-cost, HSA-eligible Bronze plan for 2026. Open enrollment begins November 1.