Proposed 14% Increase in ACA Marketplace Premiums for 2027

ACA Marketplace insurance providers are proposing a 14% median increase in premiums for 2027, continuing the trend of double-digit growth seen in previous years. This adjustment suggests a cumulative rise of over one-third in typical premiums from 2025 to 2027, as revealed by preliminary rate filings across 16 states and Washington, DC.

Among the 77 insurers in the ACA Marketplace in these regions, most have submitted proposals for premium hikes ranging from 10% to 20% for the upcoming year. Notably, 20 companies are seeking increases exceeding 20%. The preliminary filings, due by July 15, highlight expected cost drivers for healthcare services in the coming year.

Insurers attribute these proposed increases to the rising costs of healthcare services, including hospital stays, physician visits, and prescription medications such as GLP-1s. The projected cost escalation for medical treatments and prescriptions is at 10% for 2027, outpacing the average 8% growth rate recorded in recent years.

The end of the ACA's enhanced premium tax credits in 2025 led to a significant 58% rise in average out-of-pocket premiums for 2026, with deductibles increasing by around $1,000 per person. Those earning above 400% of the federal poverty threshold, approximately $62,600 for an individual in 2026, experienced a full subsidy loss, significantly increasing their premium burden. Many healthier policyholders exited the ACA Marketplaces, resulting in a risk pool of individuals with higher average healthcare costs.

This shift towards a costlier risk pool caused a four-percentage point increase in 2026 premiums, with a similar rise anticipated in 2027. Detailed insights and additional data on healthcare costs are available on the Peterson-KFF Health System Tracker.