Massachusetts Sets New Limits on Health Insurance Costs for 2027

Governor Maura Healey has announced measures to control rising health insurance deductibles, co-pays, and other patient expenses for 2027. As per the Massachusetts Division of Insurance guidelines, health insurers in the merged market must limit increases in patient cost-sharing to 3.6% starting January 2027, down from 4.8%. This initiative positions Massachusetts as the state with the most stringent limits on out-of-pocket costs, projecting an average savings of $232 annually for patients.

Governor Healey stated, "We recognize the financial strain unexpected health care costs place on Massachusetts families." She emphasized her administration's commitment to affordability by being the first in state history to impose such limits and continually striving to do more. Lieutenant Governor Kim Driscoll highlighted that although Massachusetts provides excellent health care, financial implications should not become a burden, noting the positive impact of these new regulatory caps on reducing direct patient expenses.

Commissioner of Insurance Michael Caljouw remarked on the significance of these measures amid heightened financial challenges for families. The guidance requires insurers to ensure average cost-sharing does not surpass the 3.6% limit, reflecting the average inflation change in Boston according to the Consumer Price Index. This policy stems from legislation signed by Governor Healey in 2025, which expanded the Insurance Commissioner's role in monitoring affordability within the merged market.

The administration's broader strategy to manage healthcare costs includes capping prescription drug costs and enhancing access to primary care. Governor Healey has removed prior authorization for several primary services and instituted a Health Care Affordability Working Group to further explore cost reduction opportunities for individuals and businesses throughout Massachusetts.