Connecticut Insurers Propose Significant Rate Increases for 2027

Four health insurers in Connecticut have proposed rate increases for 2027 to the state’s Insurance Department, impacting individual and small group markets. On average, proposed increases are 15.7% in the individual market and 17.8% in the small group market. The Connecticut Insurance Department is facilitating a public comment period until July 2026, followed by an informational session in August before finalizing rates for the fall open enrollment.

Connecticut Insurance Commissioner Josh Hershman highlighted the extensive challenges the state's healthcare system faces: "These filings reflect a broader challenge facing Connecticut's healthcare system. Connecticut families are under increasing pressure from rising healthcare costs, and the current trajectory is unsustainable." Hershman called for a collective effort among providers, hospital networks, insurers, and policymakers to address these cost drivers.

The number of participating insurers in 2027 has decreased, impacting both consumers and industry professionals. UnitedHealthcare's merger with Oxford Health reduced carriers in the small group market, while ConnectiCare withdrew its division from the individual market to offer coverage off-exchange. ConnectiCare's exit from the fully insured large group market marks a significant shift as the first major insurer in the state to do so. Aetna, Cigna/Oscar Health, and Harvard Pilgrim HealthCare have also exited, leaving only two carriers for small employers.

Limited consumer choices can lead to higher premiums, as a concentrated market share reduces price-lowering incentives. Connecticut approved a significant rate increase for individual and small group plans in 2026, influenced by federal regulatory changes. Anthem Blue Cross and Blue Shield attributed its increased rates to the high cost of services and uncertainties from federal developments, including Medicaid changes and premium tax credit expirations.

The Congressional Budget Office projects that new federal legislation may cause up to 15 million individuals to lose health coverage nationally. This uncertainty is reflected in current projections, as insurance actuaries anticipate a smaller, less healthy risk pool. Louise Norris, a health policy analyst, commented on the potential for increased rates due to declining enrollment, while Wakely Consulting predicts ongoing uncertainty will influence significant 2027 rate-setting adjustments.

Historically, Connecticut’s rate review process has saved policyholders nearly $460 million in the individual and small group markets over five years by limiting insurer profit margins. However, Commissioner Hershman notes that rate review alone is insufficient to address the underlying rise in healthcare costs. The 2027 rate filings signal broader nationwide trends, with fewer carriers, heightened healthcare demands, and complex federal policies challenging effective cost management.