Another Wave Of Double-Digit Obamacare Rate Hikes Coming For 2027

Health insurers offering individual coverage under the Affordable Care Act, commonly known as Obamacare, are proposing another year of double-digit percentage premium increases for 2027, according to a recent analysis by the Kaiser Family Foundation (KFF).

Based on a review of rate filings in 16 states and Washington, D.C., insurers are seeking a median premium increase of 14% for the upcoming year. This data comes from 77 insurers in states that have already submitted rate filings, with the deadline for all health insurance companies to submit their proposed premiums set for July 15.

If these initial projections hold true, typical premiums for insurers participating in the ACA marketplaces will have risen by over one-third in just a two-year period. The rising cost of healthcare services, the expiration of enhanced premium tax credits, and certain federal regulatory changes are cited as key factors driving these increases.

The expiration of enhanced premium tax credits at the end of 2025 has resulted in a 58% average increase in out-of-pocket premiums and higher deductibles, prompting over 2 million Americans to drop their coverage this year. This shift has caused disruption in the health insurance market, with several insurers opting to withdraw from the Obamacare market.

For instance, The Cigna Group announced plans to exit the Obamacare market, impacting around 369,000 health plan members across 11 states. Centene also reported a significant decline in Obamacare enrollment, with 2 million fewer enrollees compared to the previous year. UnitedHealth Group and CVS Health have also seen reductions in their Obamacare enrollment numbers.

The shrinking pool of Americans purchasing Obamacare coverage is contributing to the escalating premiums for 2027. Insurers are now setting rates based on a less healthy risk pool, further compounding the impact on next year’s premiums.

These developments underscore the challenges facing the ACA marketplace as it navigates evolving regulations, cost pressures, and shifting consumer preferences. As the healthcare landscape continues to evolve, stakeholders will need to adapt to ensure access to affordable and comprehensive coverage for all Americans.