Healthcare costs are a significant concern for U.S. voters as the midterm elections approach, with a quarter of those polled reporting "very worried" about affording care and over a third expressing "somewhat worried" sentiments, according to a KFF poll. Average benchmark premiums for Affordable Care Act (ACA) plans have risen, with a 13% increase expected next year, marking the second consecutive year of double-digit percentage hikes. Employer-sponsored health insurance costs have also climbed, with workers facing nearly a 10% increase in premiums. Since 2015, the average single-coverage deductible has risen by 43% to $1,886.
Prescription drug spending saw a 12.7% increase in 2025, reaching $915 billion and is projected to surpass $1 trillion in 2026, according to the American Society of Health-System Pharmacists (ASHP). The prices of the top 25 brand-name drugs have increased by an average of 81% since their market introduction.
Experts point to several factors contributing to these rising costs. The adoption of artificial intelligence (AI) tools, such as ambient AI scribes, is reportedly leading to more aggressive medical coding, potentially pushing patients into higher billing categories. One expert shared an experience where a brief question during a preventive visit resulted in a higher co-payment because the AI scribe logged it as a diagnostic visit. Insurance companies are also facing accusations of using AI to deny care, with a lawsuit filed against UnitedHealthcare alleging AI was used to deny post-acute care claims without human review. While UnitedHealthcare maintains its AI tools provide information and do not make adverse coverage determinations, a 2024 Senate subcommittee report indicated increased denial rates for post-acute care in Medicare Advantage plans after the use of automated tools and AI.
Tariffs implemented under the previous administration are also cited as a factor increasing healthcare costs. These tariffs raise the cost of goods and medical supplies that hospitals and providers procure, with a Georgia Tech study indicating that nearly 56% of $3.4 billion in tariffs on imported medical supplies during the first six months of 2025 was passed on to medical facilities, providers, and potentially consumers. While the White House stated that drug pricing agreements have saved Americans over $1 billion, experts argue that tariffs on essential medical components contribute to higher overall care costs.
The increased use and cost of GLP-1 medications, widely prescribed for type 2 diabetes and weight loss, is another significant driver of rising healthcare expenses. Spending on these drugs surged by over 500% between 2018 and 2023. These medications can cost over $1,000 per month, contributing substantially to overall prescription drug spending. Coverage for GLP-1s for weight loss varies among employer insurance plans, with many reporting a "significant" or "moderate" impact on their prescription drug spending. Experts anticipate that prices will remain high until generic versions become available, likely around 2030.
Industry groups have offered differing perspectives. AHIP, representing U.S. insurance providers, blames hospital monopolies, brand drugmakers, and private equity-backed providers for rising premiums and out-of-pocket costs, advocating for bipartisan reforms. PhRMA, representing biopharmaceutical companies, noted that list prices do not reflect rebates and discounts, and that insurance benefit designs influence out-of-pocket costs for patients. The American Hospital Association (AHA) stated that hospital affiliations can help maintain access to care, particularly in underserved areas, and suggested that the market dominance of corporate insurers negatively impacts affordability and access.