Average Cost of Health Insurance in Texas (2026)

What Texans are actually paying for ACA Marketplace coverage, and how premium tax credits change the math.

Reviewed by Cameron Erwin, Licensed Texas Insurance Agent (TDI License #3498689)

2026 premium snapshot

$661Benchmark plan, 40-year-old, pre-subsidy
~92%Texas enrollees receiving a premium tax credit
+34.7% Final approved average rate increase for 2026
16Insurers offering ACA plans somewhere in Texas

Figures are statewide averages and vary significantly by county, age, tobacco use, and plan metal tier. Always compare exact quotes for your ZIP code.

Why premiums are rising

Insurers cited rising medical costs, prescription drug prices, and the scheduled expiration of enhanced federal premium tax credits as the main drivers behind 2026 rate increases in Texas. Because Texas has a large number of Marketplace enrollees relying on subsidies, changes to federal tax credit policy have an outsized effect on what Texans pay out of pocket compared to expansion states.

Premium tax credits (subsidies)

Most people who enroll through the ACA Marketplace in Texas qualify for a premium tax credit that reduces their monthly cost, based on household income and family size. The credit is applied directly to your monthly premium, so the "sticker price" of a plan is often not what you'll actually pay. It's worth getting a personalized quote before assuming coverage is unaffordable.

The 400% subsidy cliff is back for 2026

Through 2025, no household earned "too much" to get at least some help with premiums. That changed on January 1, 2026: Congress let the enhanced federal subsidies expire, so the original 400% federal poverty level (FPL) cliff is back. Cross that line — roughly $60,240 for a single person or $124,800 for a family of four — and the premium tax credit drops to zero rather than phasing out gradually. See our full 2026 subsidy cliff guide, check your household with the subsidy cliff calculator, or see coverage options if you're over the line.

The Texas coverage gap

Texas has not expanded Medicaid, so adults under 65 without children and without a disability generally cannot qualify for Medicaid no matter how low their income is — and if their income is too low, they may also fall below the threshold required for Marketplace tax credits. This leaves an estimated 570,000– 617,000 Texans in a coverage gap: too much income for Medicaid, too little for subsidized Marketplace coverage. Texas accounts for roughly 42% of everyone in this gap nationwide. If this applies to you, a licensed agent can help you check for community health center programs, employer options, or short-term coverage.

Ways to lower your cost

What changes at each metal tier

Bronze plans carry the lowest monthly premium but the highest deductible, generally covering around 60% of average costs for a typical enrollee over the year. Silver plans balance a moderate premium with a moderate deductible, covering roughly 70% of average costs, and are the only tier eligible for cost-sharing reductions if your income qualifies. Gold plans cost more monthly but cover about 80% of average costs, which can pay off for someone who expects regular doctor visits or ongoing prescriptions. Platinum plans, where available, cover roughly 90% of costs for the highest premium, and tend to make sense mainly for people who expect to hit their deductible early in the year regardless of plan choice.

How Texas compares nationally

Texas premiums are close to the national average for ACA Marketplace coverage, but because Texas hasn't expanded Medicaid, a larger share of low-income Texans depend on Marketplace subsidies than in expansion states, which makes federal tax credit policy changes hit Texas households harder than the national average. Texas also has one of the largest uninsured populations in the country, which is part of why comparing your actual subsidized cost, rather than assuming coverage is unaffordable, matters so much here.

Questions worth asking before you enroll

What an emergency room visit costs

Emergency care is where an unexpected bill is most likely. What a Texas hospital ER visit actually costs breaks down the typical charges.

See what you'd actually pay

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