Health Insurance Premium Increases Expected in 2027: A Regional Overview

Health insurance premiums in states such as Washington, Maine, and Connecticut may see significant increases next year as insurers request rate hikes. State insurance regulators have received these filings for higher premiums and are committed to reviewing them diligently, which means the proposed increases might be adjusted before approval.

This trend aligns with a broader national pattern due to rising costs for medical services, prescription drugs, and new healthcare technologies. Insurers also point to the expiration of pandemic-era federal subsidies as a contributing factor. Congress did not extend the enhanced tax credits intended to reduce costs of Affordable Care Act Marketplace plans beyond 2025.

In Washington, all 13 insurers offering individual health plans have proposed an average premium increase of 22.4% for 2027. The state's insurance commissioner, Patty Kuderer, acknowledged the financial strain these increases could impose on policyholders and committed to a thorough review process. If approved, these changes would impact more than 280,000 Washington residents who do not receive health insurance through their employers.

Connecticut is also seeing similar actions, with four insurers submitting filings for higher premiums for individual and small employer plans. These submissions range from an average 12.8% to 22.7% increase. The state's insurance commissioner, Josh Hershman, has noted the increasing burden of healthcare costs on families and emphasized the necessity of analyzing these rate proposals in accordance with state regulations.

Maine's Bureau of Insurance received requests from four insurers, including a notable 18% average increase proposal by UnitedHealthcare, 20% to 25% by Community Health Options, and up to 26% by Anthem. The proposals are currently under review by the state authorities.

Reports from KFF Health News suggest that enrollment in Affordable Care Act Marketplace plans might decline by nearly 5 million if the trend continues, largely due to the increased premiums. A rise in dropout rates among healthier individuals—who are more likely to forgo coverage in light of higher costs—further pressures the insurance pool, making overall healthcare coverage more expensive.

Open enrollment for 2027 health insurance plans is set to begin on November 1, providing time for state regulators to evaluate the proposed rate increases. Decisions regarding final rate approvals and adjustments are expected by August in Maine and by September in Connecticut and Washington.