By Alec Mendoza

Health insurance often feels out of reach for many families, especially when household budgets are tight and medical prices keep rising. But even as premiums increase for the 2026 plan year, millions of Texans will still be able to find free or low-cost plans on the ACA Health Insurance Marketplace that make regular care manageable.

Most Texans buying coverage through the Marketplace have incomes below 200 percent of the federal poverty level, which equates to an annual income of about $30,000 for an individual or about $62,000 for a family of four. In 2025, more than three million Texans fell into this range. Every one of them had access to a health plan with a $0 monthly premium. Our research has also found that roughly more than one million uninsured Texans likely qualify for $0-premium Marketplace coverage.

Marketplace plans have real value for Texans because they include free preventive care and low-cost access to primary care, mental health services, telehealth and generic prescriptions. Even if a plan has a higher deductible, routine care is still covered at little or no cost. For families who rely on regular checkups, school physicals or common prescriptions, this makes a real difference.

Premiums Are Going Up, but Texans Have Protection

Premiums will likely rise for many higher income households in 2026 because of the potential expiration of temporary federal subsidies passed in response to pandemic-related disruptions to the economy. Headlines hyping those increases have raised alarms, but most lower income Texans will still qualify for federal tax credits that reduce their monthly premiums. Free or low-premium plans will continue to be widespread.

Texas benefits from state legislation passed in 2021 that aligns premiums in a way that boosts the value of federal subsidies. This makes bronze and gold plans more affordable here than in many other states. From Houston to the Panhandle, Texans who earn below 200 percent of the federal poverty level will still find at least one $0-premium plan. And many people earning up to 250 percent of the federal poverty level will often pay under $100 a month for a gold plan with strong coverage.

Premium affordability will continue to vary by region, but the overall picture remains encouraging. Texans still have competitive plan choices that keep coverage within reach.

What to Expect for Enrollment

We also expect more Texans to shift from silver plans to bronze or gold options as they look for plans with zero premiums. Lower income families should continue to see strong access to free plans, though some will need to weigh whether paying a little more each month for a silver plan is worth the lower out-of-pocket costs it offers.

Many Texans still assume health insurance is too expensive, even when zero premium plans are available. Clear communication and simple guidance can help families understand their choices and stay covered.

The bottom line is that the ACA Marketplace remains strong. Prices may rise, but affordable coverage is still available across Texas. Families who want to see what they qualify for can visit Healthcare.gov, compare plans side by side, and find an option that fits their budget. A few minutes of browsing could make the difference between going without coverage and securing the peace of mind that comes with a dependable health plan.

Alec Mendoza is a health and economic mobility policy advisor at Texas 2036, a nonpartisan public policy organization dedicated to improving lives and opportunities for all Texans through 2036, Texas’ bicentennial year, and beyond.