Maryland ACA Insurance Premiums Set to Increase by 13.7% for 2027

Insurance companies in Maryland's Affordable Care Act (ACA) marketplace have proposed a 13.7% average premium increase for 2027, affecting around 482,000 consumers enrolled in individual, non-Medicare supplemental, and small-group health plans. The Maryland Insurance Administration must review and approve these proposed changes before they take effect. Health insurers attribute these rate increases to rising healthcare costs, the conclusion of federal tax credit enhancements, and updated federal ACA marketplace regulations. Maryland Insurance Commissioner Marie Grant emphasized that the lack of renewed federal tax credits results from Congressional and past presidential decisions. She praised Governor Wes Moore and the Maryland General Assembly's efforts to introduce state-level subsidies to offset premium and out-of-pocket costs for 2026 and 2027. The proposed premium increases in the individual market vary, with CareFirst BlueChoice requesting 14.3%, CareFirst’s PPO plans 14.6%, Kaiser 12%, Optimum Choice 13.5%, and Wellpoint Maryland 12.8%. Despite these increases, Maryland remains competitive with some of the nation's lowest premiums, particularly for bronze and gold plans, according to the health policy organization KFF. Maryland introduced a subsidy program via Maryland Health Connection to counteract the effects of ending federal subsidies. This program aims to fully subsidize individuals under 200% of the federal poverty level and partially assist those between 250% and 400%, continuing into 2027 pending future assessments. Impact on Small Businesses Small businesses could also see cost hikes, as insurers in the small-group market propose a 13.1% average rate increase. This segment includes employers with up to 50 full-time equivalent employees, with proposed rate changes ranging from 4.1% to 20.7%. The Maryland Insurance Administration previously approved midyear rate increases for certain small-group plans due to unexpected hospitalization and medical expenses in 2026. Commissioner Grant highlighted their obligation to revisit ACA rate adjustments mid-year for small businesses, justifying these approved adjustments based on higher-than-anticipated claims. State regulators plan to conduct a detailed review of the proposed rate changes, with a public hearing scheduled for July 23. Final decisions are expected to be made by September, ensuring all proposed adjustments align with regulatory compliance requirements and market conditions.