What to do if you can’t afford your medical expenses

It’s not your imagination: medical costs keep going up.

The increase in medical expenses was particularly drastic between 2025 and 2026, due to changes in policies related to the Affordable Care Act (ACA), also known as “Obamacare.” For people who have ACA plans, the average monthly premium went up by a staggering 114% starting on January 1 of 2026, from $888 a month to $1,904.

How can you cope with skyrocketing medical costs? Unfortunately, there’s no simple answer. However, for many people, a combination of research and financial preparation can potentially help you reduce certain costs like prescriptions, or even lower your premium.

Why are medical expenses higher in 2026?

The main reason medical insurance costs more in 2026 has to do with federal subsidies, which are funds used to help lower specific costs for Americans. 

As of January 1, some of the subsidies for Affordable Care Act (ACA) insurance plans expired. On top of that, insurance companies that provide ACA insurance raised their rates by an estimated 26%.

As a result, more than 20 million people saw their premiums increase. If you live in one of the following states, you were likely hit the hardest:

• Arkansas
• New Mexico
• New Hampshire
• Arizona
• Georgia

5 Ways to manage high medical expenses 

The best way to manage your medical bills depends on your circumstances, including the type of insurance plan you have, whether or not you qualify for federal assistance and more. Depending on your situation, the best solution could be a combination of the following actions. 

1. See if you can find a lower-cost plan

There’s a chance you might qualify for a lower-cost insurance plan than you have now. 

For people with ACA insurance, you can enroll in a new plan each year, usually between November 1 and January 15th. This includes choosing a cheaper plan than the one you had in the past. After January 15th, you can switch plans if you experience a qualifying life event, such as:

• Involuntary loss of medical coverage
• Gaining a dependent
• Marriage or divorce
• Relocation
• Certain changes in income

For those who have insurance through an employer, you’re likely on the most affordable plan available to you. However, you can still check with your state’s insurance marketplace to see if you or your immediate family members qualify for a lower-cost ACA plan, Medicaid, or the Children’s Health Insurance Program (CHIP).

2. Open a Health Savings Account (HSA)

If you have a high-deductible healthcare plan (HDHP) — which includes all Bronze and Catastrophic plans — there’s a special option for managing your medical costs. 

You can open a Health Savings Account (HSA), which is a type of savings account used for certain medical expenses. While you can’t use an HSA to cover insurance premiums, you can use it for deductibles, coinsurance, dental and vision care, and everyday medical needs like bandaids or ibuprofen.

How do HSAs make healthcare more affordable? They not only encourage you to save for medical costs, but they also have a combination of benefits that you don’t get from any other savings account, including retirement accounts. Here’s a look at what makes them so useful:

• Investing: You can choose to invest the money in your HSA account to earn returns on the savings.
• The triple tax advantage: Contributions are tax deductible, so they can help reduce your income tax bill. Additionally, returns are not taxable and withdrawals for medical expenses are not taxed. This is also known as the “triple tax advantage.”
• Rollover: Your balance can be rolled over from year-to-year, even if you switch to a non HDHP.

Because of these benefits, an HSA can be an excellent back-up savings for your medical expenses during retirement. You can also make withdrawals for non-medical expenses after age 65, but the withdrawals will be taxed. 

3. Use a Flexible Spending Account (FSA)

If your employer provides you with health insurance, they may also offer Flexible Spending Accounts (FSAs). An FSA is a benefit account you can use to pay for certain medical expenses, including dental, vision, and other costs not covered by insurance.

A few details to consider before going this route:

• Contributions can lower your income taxes.
• Some employers contribute funds to their employees’ FSAs.
• If you switch employers, you lose the money in your account.
• You typically lose any remaining balance you have at the end of the year.
• The maximum contribution for 2026 is $3,400.

4. Apply for hospital financial assistance

Most hospitals offer some form of financial aid, but patients just aren’t aware of what’s available. Hospital financial assistance can include income-based assistance, and even specific help for large bills, regardless of the patient’s income. 

Hospital financial assistance programs vary significantly, but nonprofit facilities usually offer free care and tiered discounts, with eligibility based on family size and income.

Alternatively, if you’re being treated for certain diseases, you might be eligible for cost assistance through the PAN Foundation.

5. Search for prescription discounts

Many people believe that prescription prices are set in stone. But the reality is prices can vary by a lot. For example, drug manufacturers offer over $30 billion in assistance to consumers in the form of drug coupons. Unfortunately, many consumers don’t know this, so only around 7% of those coupons get used. 

If you’re looking to bring down the cost of prescription medications, try one or more of these options:

• See if you can find a coupon from the pharmaceutical company through Medicare.gov or MedicineAssistanceTool.org
• Use discount card sites like Good RX, Well Rx or America’s Pharmacy to find coupons and compare prices across pharmacies.
• For Medicare recipients, check to see if your state has a State Pharmaceutical Assistance Program (SPAP).
• See if your prescription is available through Mark Cuban Cost Plus Drugs, an online pharmacy that sells some medications at discounts up to 90%.

6. Use personal loans cautiously 

Personal loans* allow you to consolidate multiple medical debts into one loan, which can simplify repayment. However, interest rates on personal loans could be higher than what your provider charges.  

So, while consolidating through a loan can help organize payments, you could end up paying more overall in interest. Only consider a personal loan if you have a good credit history to qualify for a low rate, and make sure you can afford the monthly payment. Explore healthcare financing options through Prosper. 

What to do if you can’t afford insurance

As a result of rising premiums, an estimated 4.8 million Americans lost medical coverage in January of 2026. If you’re amongst the uninsured, it doesn’t mean you can’t get any medical care moving forward, it just means you may have to find alternative ways to get what you need. 

Here are some ways to obtain care and manage your medical costs if you don’t have insurance:

• Save for out of pocket expenses: Create a savings fund to cover medical care expenses that may come up, including any state tax penalties for not having coverage. If you had insurance last year, consider depositing an amount equal to your past premium to savings each month. 
• Locate services in your area: Identify clinics and other local medical facilities that offer sliding-scale care or discounts.
• Medical tourism: Carefully consider traveling abroad to receive the care you need. This can include thoroughly researching accredited and certified clinicians and facilities, and consulting with a travel medicine specialist.
• Look into assistance programs: Check to see if you or your family members qualify for the Children’s Health Insurance Program (CHIP) or any subsidized state or local care plans.
• Practice preventative care: Take measures that can help you avoid getting sick, such as staying physically active, taking vitamins and abstaining from smoking.

The bottom line: Have a plan for your care

Getting the care you need will likely be harder moving forward. But that doesn’t mean you have to neglect your health. Instead of simply opting out of coverage or avoiding doctor visits altogether, take the time to understand what you can afford, and find out what resources are available. When you need medical care, you’ll be glad you did the research up front. 

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*All personal loans made by WebBank.