Alaskans Face Rising Health Insurance Costs Amid Subsidy Uncertainty

Thousands of Alaskans are confronting significant increases in health insurance premiums as critical federal subsidies are set to expire. Many are using the federal marketplace to secure coverage for the coming year, and the news has sparked widespread concern about affordability and access to essential health care services.

The federal subsidies, which have allowed millions of Americans to afford insurance under the Affordable Care Act, are under debate in Congress. If not extended by the end of the year, enrollees could see their monthly payments rise dramatically. According to reports, those relying on these subsidies could face an average increase of 114% in their monthly premiums, with Alaskans potentially experiencing even steeper hikes.

David Elrod, a performer booker at the Crystal Saloon in Downtown Juneau, has felt the impact firsthand. For the past year, he paid approximately $60 a month for basic coverage through the marketplace. Upon applying for his 2026 plan, he was stunned to see the new premium quoted at $1,030 per month. “It was pretty scary to see,” Elrod remarked. “And that’s not even including dental, which I’m obviously going to skip this year.” He also noted that his plan comes with a $2,500 deductible, meaning he would need to pay that amount out-of-pocket before his insurance would take effect.

Elrod is not alone in facing these drastic changes. The potential expiration of federal subsidies is causing alarm among residents who depend on them for affordable health care. Earlier this fall, local data indicated that the average monthly insurance payment for Juneau residents could soar from $128 to over $1,000 if subsidies are eliminated. This could force many individuals to forgo insurance altogether, putting their health at risk.

Randy Garcia and Heidi Adams work with JAMHI Health & Wellness, a nonprofit organization in Juneau that provides care regardless of insurance status. Adams emphasized the critical role they play in the community, stating, “Everyone’s situation is so very different, and so by coming in, we can assist them with connecting to the resources they need.” With Alaska already having some of the highest health care costs in the nation, the potential loss of subsidies could exacerbate existing challenges.

The urgency is highlighted by personal stories like Elrod’s. He has a medical condition requiring costly medication to prevent the formation of blood clots. “If I don’t take this medication, yeah, blood clots will come back. They will kill me,” he explained. Faced with rising costs, he is considering reducing his medication intake to save money, illustrating the difficult choices many residents may soon have to make.

Adams anticipates an increase in demand for services at JAMHI as residents seek affordable health care alternatives. “We can assume we’re going to see a much larger population coming in because they can’t afford it any other way,” she noted. JAMHI has become a safety net for many in the community, providing essential care when other options appear limited.

The open enrollment period for the federal marketplace runs until January 15, 2026, with a deadline for coverage starting in the new year set for December 15. Elrod and others are holding out hope for a change in the subsidy situation before making final decisions on their health coverage for 2026. As the debate continues in Congress, the outcomes will significantly affect the health care landscape for Alaskans, potentially leaving many with difficult choices ahead.