Premium Increases for Health Insurance in 2027: What You Need to Know
Health insurance providers are requesting significant premium increases for the 2027 plan year, with some proposals as high as 30 percent, according to a June 11, 2026 report. The rise in medical care costs and the end of enhanced federal subsidies, which previously stabilized rates, are major factors driving these proposed hikes. State insurance regulators are starting to voice concerns regarding the extent of these adjustments.
Self-employed individuals may feel the impact of these rate increases more intensely, as they often purchase their own health insurance through Affordable Care Act marketplaces. Unlike employer-sponsored plans, these consumers fully absorb any premium hikes, potentially impacting their personal finances significantly.
The proposed rate hikes differ widely by state and insurer. For instance, ConnectiCare Benefits in Connecticut is seeking an average rate jump of 22.7 percent for individual policies. Insurers in Washington have applied for an average increase of 22.4 percent, while in Maine, some requests are as high as 32 percent. Massachusetts insurers are asking for a 12.9 percent average increase, whereas CareFirst and Kaiser Permanente in the District of Columbia have submitted requests averaging 8.6 and 10 percent, respectively. All these proposals are subject to regulatory review, with officials in multiple jurisdictions indicating they will scrutinize these adjustments thoroughly before approval.
The expiration of enhanced premium tax credits from 2021 to 2025 particularly affects those earning above 400 percent of the federal poverty level, as they can no longer access these subsidies. Consequently, these consumers are directly facing increased premium costs, contributing to a 5 percent drop in marketplace enrollments this year—a reduction amounting to 1.2 million people—and a $1,000 uptick in the average annual deductible, now nearing $3,800.
Potential premium hikes in 2027 could further burden those acquiring insurance independently of employer support. Experts advise that consumers reassess their insurance options during open enrollment, as plan pricing and subsidy eligibility may vary annually. People might also consider utilizing the self-employed health insurance deduction to ease some of these financial pressures during tax season.
Despite the concerning initial rate hike requests, there remains the possibility of regulators reducing these rates. For example, Connecticut's attorney general has termed the current requests as excessive and promised a thorough review. Nationally, it's uncertain if Congress will renew the subsidies before 2027—an action that could substantially change the financial landscape for many ACA marketplace users.