Health Insurance Premiums Could Jump 22% in 2027

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Health insurance premiums are on the rise in several states, including Washington, Maine, and Connecticut, with insurers requesting double-digit percentage increases for the upcoming year. State insurance officials are closely examining these requests, leaving room for potential reductions.

This trend is part of a national pattern driven by escalating costs of medical services, prescription drugs, and new medical technologies. Insurers are also pointing to the impact of the end of federal subsidies that were in place during the pandemic. Congress’s failure to extend enhanced tax credits for Affordable Care Act Marketplace plans has further exacerbated the situation.

In Washington state, all 13 insurers offering individual plans have requested premium increases for 2027, averaging 22.4%. This could significantly impact over 280,000 individuals in the state who rely on individual health insurance plans.

Other states facing health insurance cost hikes

In Connecticut, four health insurance providers have filed for higher premiums for 2027, affecting individual plans covering 157,000 people and small employer plans covering 63,000 people. The requested increases range from 12.8% to 22.7%, prompting the state insurance department to review them for compliance with state law.

Maine’s Bureau of Insurance has also received requests for premium hikes from four insurers, with increases ranging from 18% to 26%. The bureau is currently reviewing these proposals to ensure they meet regulatory standards.

According to a KFF Health News report, Affordable Care Act Marketplace enrollment is projected to decline by nearly 5 million people this year, with average monthly net premium payments increasing from $113 to $178. The end of tax credits is expected to lead to healthier individuals dropping their coverage, making the remaining insured pool more costly to cover.

Open enrollment for 2027 plans is set to begin on Nov. 1, giving regulators time to assess and finalize the proposed rate increases. Decisions on premium hikes in Maine, Connecticut, and Washington are expected to be made in August and September.