If your Marketplace health insurance bill increased this year, you are not alone, and you did not make any mistakes. The larger federal subsidies that started in 2021 ended with 2025. So 2026 is the first year back on the older, smaller rules. Here is what has changed and how it affects families in Arizona and Alabama.
What actually changed
Premium tax credits, which help reduce your monthly Marketplace premium, still exist. However, the enhanced credits that made coverage free or almost free for many lower-income households have ended. These enhancements also previously extended assistance to families earning above four times the federal poverty level.
With the enhancements gone, subsidy amounts decreased for everyone, and the so-called subsidy cliff is back. If you earn just one dollar over 400 percent of the federal poverty level, you will receive no premium help at all. KFF estimated that the average enrollee's net premium payment would roughly double compared to 2025.
How this hits Arizona
About 83 percent of Arizona Marketplace enrollees received financial help in 2026, so nearly everyone has felt the change. In addition to smaller subsidies, Arizona carriers filed major rate increases for 2026. One important note for shoppers is that plans on Arizona's individual Marketplace are HMOs, so make sure your doctors and hospitals are in network before choosing a plan based solely on price.
How this hits Alabama
Alabama's Marketplace has four carriers in 2026: Blue Cross Blue Shield of Alabama, UnitedHealthcare, Ambetter, and Oscar, which is new to the state this year. Blue Cross still covers the majority of the individual market and has the largest rural network, but it raised rates significantly for 2026. With a new carrier in play, this is the year for Alabama shoppers to compare options instead of automatically renewing.
Five ways to lower your cost
- Shop every year. The plan that was cheapest for you in 2025 may not be the best in 2026. Auto-renewal often leads to overpaying.
- Recheck your subsidy estimate. Your credit is based on your projected income. If your income has dropped or your household size has changed, update your information. You might qualify for more help than you currently receive.
- Be cautious of the cliff if your income is near 400 percent of the poverty level. Legitimate actions like pre-tax retirement contributions or HSA contributions can lower your income for the Marketplace. Consult your tax professional about your specific situation.
- Consider a different metal tier. Depending on your subsidy, a Bronze plan with an HSA, or a Silver plan with cost-sharing reductions if your income qualifies, may be better than your current plan.
- Use a licensed agent. It costs you nothing, because the carrier pays us, and an agent can review every carrier in your area at once.
Key dates
Open enrollment for 2027 coverage opens November 1, 2026, in both Arizona and Alabama. The closing date is not settled. A federal court vacated the shortened open enrollment provision of the Marketplace Integrity and Affordability rule in June 2026, so the final deadline is unresolved, and absent a successful appeal many states are expected to sit at January 15. Confirm the current deadline with us before you count on a date.
Outside of that period, you need a qualifying life event, such as losing job-based coverage, moving, getting married, or having a baby, to enroll through a Special Enrollment Period.