If you opened your health insurance bill this month and felt your stomach drop, you’re not alone. Michigan marketplace premiums increased an average of 20.2% for 2026, with some major carriers jumping even higher—Blue Cross Blue Shield by 23-24%, Priority Health by 19%, and UnitedHealthcare by nearly 26%.
But here’s what makes 2026 different: the enhanced federal subsidies that had been softening the blow since 2021 expired on January 1. For many Michigan residents, that means premiums haven’t just increased—they’ve doubled or even tripled compared to what they paid last year.
The good news? You still have options. And you have until January 15, 2026 to make changes.
What Actually Changed on January 1
The enhanced premium tax credits introduced during the pandemic made health insurance significantly more affordable for millions of Americans. In Michigan, marketplace enrollees were receiving an average of $380 per month in subsidies. Those enhanced credits are now gone.
According to KFF, a nonpartisan health policy research organization, annual premium payments for previously subsidized enrollees are rising 114% on average nationwide. For a 60-year-old earning just over $63,000—the new “subsidy cliff”—annual premiums could jump from around $5,400 to nearly $15,000.
The subsidy cliff is particularly painful: if your household income exceeds 400% of the federal poverty level by even one dollar ($62,600 for an individual, $128,600 for a family of four), you now lose all subsidy eligibility. That wasn’t the case in 2025.
Your Options Before January 15
If you haven’t locked in your 2026 coverage yet—or if you auto-renewed and want to reconsider—here’s what you can still do:
Shop different metal tiers. Many people are switching from Silver plans to Bronze plans, which have lower monthly premiums but higher out-of-pocket costs. If you’re generally healthy and primarily want protection against major medical events, this tradeoff may work in your favor. More Michiganders are making this switch: enrollment in bronze plans has increased significantly this year.
Explore catastrophic coverage. New for 2026: if you lost subsidy eligibility due to income, you may now qualify for catastrophic plans regardless of age. Previously limited to those under 30, these plans have the lowest premiums but highest deductibles—designed to protect you from worst-case scenarios while keeping monthly costs manageable.
Pair your plan with an HSA. Also new for 2026: all Bronze and Catastrophic plans are now HSA-eligible. A Health Savings Account lets you set aside pre-tax dollars for medical expenses. If you’re facing higher out-of-pocket costs anyway, an HSA can provide meaningful tax savings and help you budget for healthcare expenses throughout the year.
Verify your actual subsidy eligibility. Even without the enhanced credits, subsidies haven’t disappeared entirely—they’ve just returned to pre-2021 levels. If your income is below 400% of the federal poverty level, you may still qualify for some assistance. It’s worth running the numbers again, especially if your income has changed.
Don’t auto-renew without checking. Networks change. Formularies change. The plan that worked for you in 2025 may have different doctors, different prescription coverage, or a significantly different price for 2026. Before you let auto-renewal lock you in, verify that your doctors and medications are still covered.
What Happens After January 15
If you miss the January 15 deadline, you’ll generally need to wait until next fall’s open enrollment to make changes—unless you experience a qualifying life event. Job loss, marriage, divorce, having a baby, or moving to a new area can all trigger a Special Enrollment Period that gives you 60 days to enroll or switch plans.
Losing your current coverage also qualifies you for special enrollment. So if your insurer left the Michigan marketplace (as HAP CareSource and Molina did in several counties), you have options outside the standard timeline.
When Sorting Through This Alone Feels Overwhelming
Comparing plans across multiple carriers, understanding subsidy calculations, weighing premium versus out-of-pocket costs—this is complicated stuff. And the stakes are high.
That’s exactly what we help people navigate at JDW & Associates. As an independent agency, we work with multiple insurance carriers—including Blue Cross Blue Shield, Priority Health, and United Healthcare—which means we can help you compare options and find coverage that fits your needs and budget. We’re not tied to one company, and we don’t disappear after you enroll.
If you’re feeling stuck or simply want a second opinion before the deadline, reach out to us. We’ve been helping individuals and families in Chelsea and the surrounding Washtenaw County area navigate exactly these kinds of decisions for over 30 years.
Take Action This Week
The January 15 deadline is real, and it’s coming fast. Whether you explore your options on your own through HealthCare.gov or work with a local agent who can walk you through the choices, the important thing is to act before time runs out.
Your health insurance situation may have changed dramatically this year. But that doesn’t mean you’re out of options—it just means you need to find the right ones.
Contact JDW & Associates for a free consultation before January 15.
JDW & Associates is an independent insurance agency serving Chelsea, Michigan and the surrounding Washtenaw County area since 1991. We help individuals, families, and small businesses find the right health, life, and Medicare coverage.
