Premium Hikes for ACA Plans in Missouri and Kansas for 2027

Health insurance buyers in Kansas City utilizing the federal marketplace can anticipate higher premium costs in the coming year. Preliminary rate submissions from health insurers to regulators in Missouri and Kansas indicate planned premium hikes for individual Affordable Care Act (ACA) marketplace plans in 2027.

Across Missouri and Kansas, insurers are requesting increases ranging from 10% to 35% over the 2026 rates. This demand reflects a broader pattern observed in the previous year when similar rate increases were proposed.

The proposed rate hikes are attributed to rising prices for healthcare services and medications, along with an increase in the volume of claims, contributing to higher operational costs for insurers. These factors are cited by companies to justify the need for increased premiums. Nationally, the median premium increase request for the individual marketplace is about 15% for the coming year, according to an analysis by Peterson-KFF. This follows a 20% median increase last year after ratification.

Approval of these rate requests could result in significant cumulative premium hikes over two years, potentially exceeding a one-third increase. The Kansas Insurance Department and the Missouri Department of Insurance are scrutinizing the rate filings to ensure compliance with state and federal regulations. They also provide an opportunity for public feedback, with Missouri accepting comments until August 31 and final rate announcements expected by October 31.

Though fewer than 10% of consumers purchase insurance through the ACA marketplace, the trend in premium increase requests provides insight into insurers' strategies in the broader market, impacting other insurance sectors. Small group markets in Missouri and Kansas, catering to businesses with two to 50 employees, are also projecting rate increases of 9% to 19%.

Notably, UnitedHealthcare in Kansas has requested the most substantial premium increase, proposing increases between 29.68% and 36.48%. The insurer cites escalating expenses in healthcare spending and a high loss ratio of 95.85% for its justification, exceeding the ACA-mandated threshold of 80%-85%.

A decline in marketplace enrollment is also observed, partly due to the expiration of enhanced premium tax credits at the end of last year, resulting in healthier individuals withdrawing from ACA plans. Missouri and Kansas have noted significant drops in enrollment, which insurers suggest could raise costs and justify further premium adjustments. Oscar Insurance Co. in Missouri echoes these concerns, substantiating its requested 15.9% premium increase on similar grounds.

The data and trends from these filings offer critical insights into how insurers may approach future rate-setting across various markets.