Feeling the pinch of rising health insurance rates? Debt management could help

The federal government's recent shutdown, largely triggered by disputes over whether to preserve or expire enhanced healthcare subsidies in 2026, has raised questions about future costs for millions.

Affordable Care Act enrollees who rely on these subsidies to keep health insurance affordable could face an average 26 percent rate jump if funding lapses.

With several decisions still unresolved, many are bracing for additional premium increases on top of an already expensive insurance market. This surge adds strain on households living paycheck to paycheck and juggling existing debt, forcing budgets to stretch further as essentials compete for the same limited dollars.

"While we may have little control over insurance costs, there are still immediate steps consumers can take to adapt their financial pictures," said Manny Salazar, CEO of Take Charge America, a national nonprofit credit counseling and debt management agency. "People can find some breathing room through smart budgeting and structured debt support."

Actionable tips to keep households resilient

Compare this year's healthcare spending with last year's. Understanding how premiums and out-of-pocket costs have shifted helps you set realistic expectations for future spending. With a concrete number (or solid estimate), it's easier to gauge which flexible expenses can be trimmed.

* Revisit all recurring charges. Consider cancelling, or going down a tier, on any subscriptions that aren't "must-haves." Monthly charges have recently crept upward for many streaming services, apps and memberships. Small adjustments can free up essential dollars.

* Limit credit card use to cover medical or insurance gaps. It's not always easy when bills hit suddenly, but high-interest balances build fast. If using a card is your only option, try to limit the amount spent and quickly fold it into a payoff plan.

* Build a modest cushion for medical surprises. An emergency fund can make copays or unexpected visits less of a burden on your budget..

* Look for lower-cost prescriptions. Ask about generic and biosimilar alternatives and compare prices between pharmacies — they can vary wildly. Also explore tools like GoodRx, which can reduce medication costs by up to 80 percent.

* Consider a Debt Management Plan. If your budget is strapped with credit card payments, a DMP can help reduce interest rates and shorten the payoff window, freeing up more money for healthcare, daily expenses or savings. To see if you qualify for a DMP, schedule a free credit counseling session with a nonprofit agency.

About Take Charge America, Inc.

Founded in 1987, Take Charge America, Inc. is a nonprofit agency offering financial education and counseling services including credit counseling, debt management, housing counseling and bankruptcy counseling. It has helped more than 2 million consumers nationwide manage their personal finances and debts. Learn more at takechargeamerica.org or call (888) 822-9193.