Seniors are generally paying more for health insurance under Obamacare, especially as they approach Medicare eligibility but are not yet covered by it. The Affordable Care Act (ACA), commonly known as Obamacare, introduced marketplaces where individuals can buy health insurance, but premiums tend to rise with age, and this affects seniors disproportionately.
One key factor is that health insurance premiums on the ACA marketplace increase significantly as people get older. For example, a 60-year-old can expect to pay much higher monthly premiums than a younger adult. The average monthly cost for a Silver plan for a 60-year-old is around $1,231, though less comprehensive plans can reduce this amount somewhat. This is because insurers are allowed to charge older adults up to three times more than younger adults, reflecting the higher health risks associated with aging. This age rating means seniors who are not yet eligible for Medicare often face steep premiums if they rely on ACA marketplace plans.
Additionally, recent changes have made the situation more challenging. Premiums on the ACA marketplace are expected to increase by about 18% in 2026, and some estimates suggest out-of-pocket costs could jump as much as 75% due to the expiration of enhanced federal subsidies that had been temporarily boosting affordability. These subsidies had helped many people, including seniors, by lowering the cost of premiums substantially. With their disappearance, seniors who rely on marketplace plans will see a significant rise in their insurance bills.
Seniors with higher incomes may also face additional financial burdens under Obamacare. For instance, there is a 3.8% surcharge tax on unearned income (like investments) for singles earning over $200,000 and couples earning over $250,000 annually. Working seniors with earned income above these thresholds are subject to an additional 0.9% Medicare payroll tax. These taxes can indirectly increase the overall cost of healthcare for wealthier seniors.
Another important consideration is that the ACA raised the threshold for deducting medical expenses on taxes from 7.5% to 10% of adjusted gross income (AGI), which affects seniors’ ability to claim these deductions. However, there was a temporary exemption for individuals 65 and older that lasted until the end of 2016, after which the higher threshold applies. This change means seniors may have to spend more out-of-pocket before they can benefit from tax deductions related to medical expenses.
For seniors aged 50 to 64, who are too young for Medicare but often have higher healthcare needs, the ACA marketplace
