Insurers are proposing a median 14% premium increase for 2027 Affordable Care Act plans, marking the second consecutive year of double-digit hikes. Rising healthcare costs and the expiration of enhanced subsidies are cited as primary drivers.
The proposed premium increases will significantly impact the cost of health insurance for millions of Americans, particularly those who no longer qualify for enhanced federal subsidies.
Insurers participating in the Affordable Care Act (ACA) marketplace are proposing a median premium increase of 14% for 2027, according to an analysis of initial filings from KFF. This marks the second consecutive year of double-digit proposed hikes, following a median finalized rate change of 20% in 2026.
Insurers attribute the rising costs to several factors, including increased healthcare sector expenses and overall economic inflation. A significant driver also cited is the expiration of pandemic-era enhanced subsidies, which previously offset costs for many enrollees. This expiration led to a 13% decline in Obamacare enrollment in 2026, leaving a potentially sicker and higher-cost population in the marketplace.
The loss of enhanced subsidies means enrollees with incomes at 400% or more of the federal poverty level face the full increase in premiums. The sicker risk pool drove insurers to raise premiums by 4 percentage points in 2026 and is expected to lead to a similar increase in 2027.
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