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Insurers Propose 14% Median Premium Increase for 2027 Obamacare Plans
Health insurance companies are seeking a median premium increase of 14% for Affordable Care Act (ACA) plans in 2027, according to a new analysis of rate filings by the health policy research group KFF. The proposed increase is the second-highest since 2018. The data was compiled from filings by 77 insurers in 16 states and Washington, D.C., ahead of the July 15 deadline for submissions.
Insurers attribute the requested rate hikes to several factors, including an anticipated increase in higher-risk patients. They project that a sicker patient pool will account for a 4% rise in premiums as healthier members are expected to continue dropping coverage. Other reasons cited for the increase include wider economic inflation, the rising cost of medications, and increased consolidation among medical providers.
The proposed increases follow a significant shift in the marketplace. ACA enrollment fell by 13% in 2026, dropping from 22.1 million to 19.2 million people, after enhanced subsidies from the COVID-19 pandemic era expired. According to KFF, this led to a 58% premium increase in 2026 for those who lost the extra assistance, along with deductibles rising by approximately $1,000 per person.
AdBased on recent trends and the latest proposals, premiums could be on track to rise by more than 33% between 2025 and 2027. However, federal subsidies are still available for most marketplace enrollees who make less than 400% of the federal poverty level. Major insurers including Centene and UnitedHealth have pointed to elevated medical costs this year, while CVS Health's Aetna unit exited the ACA marketplace for 2026 due to anticipated cost pressures.