Medical costs, inflation, and labor shortages are driving the hikes
The enrollment window for 2027 health insurance under the Affordable Care Act (ACA) opened Sunday in most US states, with rising premiums and fewer insurance options creating challenges for consumers.
People must enroll by December 15 to secure coverage starting January 1. According to a new KFF analysis, average full-price marketplace premiums are expected to rise by about 13% in 2027, marking the second consecutive year of double-digit increases.
The ACA groups health insurance plans into four categories: platinum, gold, silver, and bronze. Platinum and gold plans cost more each month but generally mean lower medical expenses when policyholders need care. Silver and bronze plans have cheaper monthly premiums but higher out-of-pocket costs. This year, though, even the least expensive plans are seeing price increases.
Reasons for price increases
Medical costs, inflation, and labor shortages are driving the hikes. However, increases vary by state, ranging from 3% in Vermont to nearly 28% in Arizona.
Higher insurance costs can create a damaging cycle for both insurers and consumers.
According to KFF, the expiration of enhanced premium tax credits could drive healthier enrollees out of the marketplace in search of savings, reducing the size and stability of insurers' risk pools.
Lower enrollment can weaken profitability, making insurers less willing to continue offering marketplace coverage.
Insurance choices are also shrinking as 11 insurers announce plans to leave ACA marketplaces. Cigna, which covers more than 350,000 marketplace customers, will exit all 11 states where it operates.
Experts urge consumers to compare premiums, deductibles, covered medicines, and doctor networks before renewing their plans.