Expiration of Tax Credits Drives Sharp Premium Increases

Many Kansans who purchase health insurance through the Affordable Care Act marketplace are facing significantly higher premiums in 2026 following the expiration of enhanced federal tax credits, according to a new analysis from the Kansas Health Institute (KHI).

KHI outlined the changes in its latest issue brief, 2026 Affordable Care Act Health Insurance Marketplace, which examines how the end of enhanced premium assistance is impacting consumers across the state.

The enhanced Advance Premium Tax Credits (APTC), first created under the American Rescue Plan Act and later extended through the Inflation Reduction Act, expired at the end of 2025. As Congress considers whether to reinstate or revise the enhanced credits, KHI's analysis indicates that most marketplace enrollees will pay more for coverage in plan year 2026.

In Kansas, six insurers are offering a total of 64 health insurance plans on the marketplace. While most counties continue to have at least two insurers, 14 counties now have only one insurer—Blue Cross and Blue Shield of Kansas, Inc.—for the first time, raising concerns about reduced competition and consumer choice in parts of the state.

According to KHI, the average monthly premium for a benchmark silver plan for a family of four in Kansas increased from $1,848 in 2025 to $2,381 in 2026, a 28.9 percent increase before Advance Premium Tax Credits are applied. Deductibles have also increased, with benchmark silver plans in 2026 ranging from $4,000 to $6,000 for individuals and $8,000 to $12,000 for families of four.

"The expiration of enhanced premium tax credits means many Kansans will feel the impact of rising premiums more directly in 2026," said Cynthia Snyder, KHI senior analyst. "Premium increases have been driven by higher medical costs and market changes, and without enhanced assistance, those increases translate into higher out-of-pocket costs for families."