Living in New York City during the “perfect storm” of 1991, I witnessed firsthand how a combination of conditions can create a much larger impact than any single event could.
While the storm affected different areas, it’s the convergence of several factors in the healthcare system today that is having a similar effect.
These combined challenges are influencing health outcomes and driving up medical and health insurance costs.
The Effect of Government Changes on Health
Changes in government policies are expected to significantly impact the health of U.S. residents. Cuts to essential support programs, such as the Supplemental Nutrition Assistance Program (SNAP) and Head Start, are likely to lead to poorer health outcomes for children and families.
These cuts, along with reductions in Medicaid support for hospitals and clinics, will result in less accessible healthcare and, ultimately, higher medical costs due to increased emergency room visits and worse health outcomes.
Rising Health Insurance Costs in 2026
Several factors point to a significant increase in health insurance premiums for 2026. One key driver is the expiration of enhanced premium tax credits for Affordable Care Act (ACA) Marketplace plans, originally expanded under the American Rescue Plan and extended through the Inflation Reduction Act.
Without further legislative action, millions of enrollees will face higher premiums once these subsidies end at the end of 2025.
The Impact of Proposed Tariffs on Pharmaceuticals
Another contributor to higher costs is the proposed U.S. tariffs on imported pharmaceuticals and medical equipment. With tariffs potentially as high as 25% (or even more), experts predict disruptions in supply chains and higher costs for branded drugs, generics, and insurance premiums.
These changes are likely to affect both Medicare and private insurance plans, further driving up healthcare expenses.
Medicaid Cuts and Their Consequences
The 2025 Budget Reconciliation Act, also known as the One Big Beautiful Bill Act, includes significant cuts to Medicaid. These reductions, projected to save $698 billion, are expected to reduce Medicaid enrollment by 10.3 million by 2034.
As a result, we will likely see more preventable hospitalizations, delayed care, and higher rates of medication nonadherence, leading to excess deaths. Rural hospitals and safety-net providers will be particularly vulnerable, facing financial strain and potential closures.
Preparing for Increased Premiums
These developments are already being factored into the premium increases for both the Affordable Care Act Marketplace plans and employer-based coverage. Experts predict that premiums will rise by double digits, possibly over 20% in some cases.
This makes it crucial for individuals to assess their health insurance situation and be proactive in understanding potential changes.
The Corinthian Plan’s Approach to Premium Increases
As an example, The Corinthian Plan, which has provided comprehensive coverage for 16 years, aims to mitigate premium increases by utilizing reserves.
However, due to rising medical costs and high claims, premium increases for The Corinthian Plan are likely to be higher than usual for the upcoming year.
Since its inception in 2010, the plan has kept increases below the industry average, and they hope to maintain that trend, despite the ongoing challenges.
Taking Action and Engaging in Your Community
In the face of these healthcare challenges, it is important to remain proactive. I encourage everyone to stay informed about their health coverage and understand how changes in government policy may affect their premiums.
In these turbulent times, it’s also important to engage with your local community. Support food pantries, help with medical bills, and contribute to your neighbors’ well-being. Small actions can make a big difference.
Advocating for Change and Supporting One Another
As we navigate these stormy times, I also encourage everyone to speak up and advocate for those in need. Pray for guidance, and reach out to your representatives to express your concerns about healthcare policies. Together, we can work towards creating a system that prioritizes health and well-being for all.
