ACA insurers seek 14% median premium increase for 2027

Insurers offering coverage under the Affordable Care Act filed preliminary rate requests for 2027 that show a median increase of 14% across 16 states and the District of Columbia. The Peterson-KFF Health System Tracker analyzed the filings and found that the proposed increases would be the second-highest annual jump since 2018 if regulators approve them.

Drivers of the rate requests The main factor cited in the filings is the rising cost and use of medical care, including specialty drugs and GLP-1 weight-loss medications. Insurers also attributed roughly four percentage points of the requested increases to the expiration of enhanced federal subsidies that had lowered consumer premiums.

Several filings noted that younger and healthier enrollees are leaving the market, leaving a remaining pool of older and costlier members.

Policy changes and enrollment effects Some insurers stated that recent federal policy changes are expected to make enrollment more difficult and are contributing to higher rates. One filing from UnitedHealthcare attributed 12.7% of its requested rate change to the combined effects of subsidy expiration and new enrollment rules.

ACA enrollment fell by about three million people between February of this year and the same month last year.

Effects on consumers Premium increases will primarily affect enrollees with incomes above 400% of the federal poverty level, currently about $62,600 for an individual. People below that income threshold continue to receive tax credits that adjust with the cost of a benchmark plan.

Some consumers may need to switch plans during the October enrollment period to keep monthly premiums stable, according to a Brookings Institution analysis.