Potential Health Insurance Premium Hikes in Maryland for 2027
Maryland residents purchasing health insurance through the Affordable Care Act marketplace are facing potential premium hikes next year. Insurers have filed for an average rate increase of 13.7% for 2027, as noted in submissions to the Maryland Insurance Administration. These proposed adjustments will affect approximately 482,000 individuals enrolled in non-Medicare supplemental and small-group health plans. The rate increases await approval from state insurance regulators.
Health carriers attribute the proposed hikes to escalating healthcare costs, the lapse of enhanced federal tax credits, and modifications to federal marketplace rules. Maryland Insurance Commissioner Marie Grant emphasized, "The significant rate increases reflect the loss of enhanced federal tax credits, which were not extended by Congress." Efforts by Governor Wes Moore and the Maryland General Assembly aim to introduce a state-based subsidy for future years, designed to alleviate potential premium and out-of-pocket cost increases for residents.
The requested rate increases differ among insurers in the individual market. CareFirst BlueChoice is seeking a 14.3% increase, CareFirst’s PPO plans 14.6%, Kaiser 12%, Optimum Choice 13.5%, and Wellpoint Maryland 12.8%. Despite the proposed hikes, Maryland continues to boast some of the lowest premiums nationwide. According to KFF, the state had the lowest average premiums for bronze and gold plans in 2026 and the second-lowest for silver plans.
To offset the expiration of enhanced federal subsidies, Maryland has implemented a subsidy program via Maryland Health Connection. This initiative is designed to replace the full value of subsidies for residents below 200% of the federal poverty level and half for those between 250% and 400% for 2026. The program is expected to continue into 2027, with possible adjustments to the subsidy amounts.
In the small-group market, which includes employers with 50 or fewer full-time equivalent workers, insurers have proposed an average rate increase of 13.1%. These increases vary widely, from 4.1% to 20.7%. Previously, the Maryland Insurance Administration approved midyear rate increases for certain small-group plans in 2026 due to higher than anticipated hospitalizations and medical costs. Commissioner Grant remarked, "Our team carefully analyzed the requests and determined that some level of rate changes were justified based on significantly higher than expected claims."
State regulators will continue examining the proposed rates, with a public hearing scheduled for July 23. Final decisions on the rate proposals are expected in September, ensuring a thorough review process before implementation.