Key facts
- Insurers are requesting a median premium increase of 14% for 2027 Obamacare plans.
- This proposed rate is the second-highest increase requested since 2018.
- Factors driving the increase include more high-risk patients, economic inflation, and rising medication costs.
- Obamacare enrollment saw a 13% decline in 2026 after the expiration of pandemic-era subsidies.
- Without subsidies, premiums increased 58% in 2026 and deductibles rose about $1,000 per person.
Companies offering health insurance plans under the Affordable Care Act, commonly known as Obamacare, are seeking significant premium increases for 2027. According to data compiled by the health policy research group KFF, insurers are requesting a median rate increase of 14% over 2026 premiums.
This proposed rate hike represents the second-largest increase since 2018. Insurers are required to submit their proposals to regulators by July 15, detailing their expected costs and planned price adjustments for the upcoming year. Last year, insurers requested an 18% median rate hike, citing an anticipated imbalance between sicker patients and healthier enrollees.
For 2027, insurers anticipate that a growing pool of patients with greater medical needs will drive premiums up by an estimated 4%, as healthier individuals continue to drop coverage. The rising costs of medications, broader economic inflation, and increased consolidation among medical providers are also cited as key drivers for the proposed premium increases.
Obamacare enrollment experienced a 13% decline in 2026, falling from 22.1 million people in 2025. This decrease occurred after the expiration of enhanced subsidies that had been provided to help individuals maintain coverage during the COVID-19 pandemic. The Department of Health and Human Services now estimates that approximately 19.2 million Americans are enrolled in these plans.
Data from KFF indicates that without the additional subsidies, premiums saw a substantial rise of 58% in 2026, with deductibles increasing by about $1,000 per person. To compile its projections for 2027 rate increases, KFF analyzed filings submitted by 77 insurers across 16 states and Washington, D.C. Based on these latest proposals, premiums are on track to increase by more than 33% between 2025 and 2027.
Most marketplace enrollees earning less than 400% of the federal poverty level are still eligible for subsidies. Several insurers, including Centene and UnitedHealth, have reported elevated medical costs within their Obamacare businesses this year. Last year, CVS Health announced that its Aetna insurance unit would cease offering Obamacare plans in 2026 due to anticipated cost increases in that sector.