Another Wave Of Double-Digit Obamacare Rate Hikes Coming For 2027
Health insurers selling Obamacare are proposing another year of double-digit percentage premium increases for 2027, a new KFF analysis shows.
Bruce Japsen, Senior Contributor
Forbes
2 min read
8/10
Washington, D.C.
Key Takeaways
KFF analysis of 10 state rate filings shows proposed 2027 Obamacare premium increases range from 8% to 18%, with a median of 12%.
Major insurers like UnitedHealthcare, Anthem, and Centene are driving the double-digit requests, citing medical cost inflation and high drug prices.
Enhanced premium subsidies from the Inflation Reduction Act, which lowered net costs for millions, are set to expire after 2027 unless renewed by Congress.
Over 21 million Americans currently enrolled in ACA plans could see net premium increases of hundreds of dollars monthly if subsidies lapse.
Medical cost trend, fueled by GLP-1 drugs and hospital consolidation, continues to outpace general inflation by 2–3 percentage points.
For the third consecutive year, Americans buying health insurance through the Affordable Care Act face another wave of double-digit premium increases. Insurers are proposing rate hikes averaging between 10% and 15% for 2027 plans, according to a new analysis from KFF, the health policy research organization. Lead: The KFF analysis, released July 8, 2026, examined rate filings in 10 states and found proposed premium increases ranging from 8% to 18%, with a median of 12%. Major insurers including UnitedHealthcare, Anthem, and Centene have submitted proposals to state regulators, citing rising medical costs, prescription drug prices, and inflationary pressures. Context: The Affordable Care Act marketplace, often called Obamacare, has seen repeated double-digit rate hikes since 2024. Enhanced premium subsidies enacted under the Inflation Reduction Act temporarily lowered out-of-pocket costs, but those subsidies are set to expire after 2027 unless Congress acts. The Biden administration has pushed to make subsidies permanent, but legislative gridlock in Washington leaves the future uncertain. Key Details: The KFF analysis highlights that proposed increases vary widely by state. In states like Texas and Florida, some insurers are seeking hikes of 15% or more, while in more regulated markets like California and New York, increases are closer to 8%. Overall, nearly 21 million Americans currently rely on Obamacare plans, and without subsidy extensions, many could see net premiums jump by hundreds of dollars per month. Analysis: The persistent double-digit trend signals deeper structural issues in the individual health insurance market. Medical cost trend—driven by expensive GLP-1 drugs, hospital consolidation, and provider shortages—continues to outpace general inflation. Experts caution that even moderate premium increases can price out low- and middle-income enrollees, potentially causing churn and reducing coverage gains made over the past decade. Outlook: The 2027 rate proposals are not final; state insurance regulators will review and often negotiate lower increases before open enrollment begins November 1, 2026. However, the KFF data suggests consumers should expect another year of higher costs. All eyes are on the November midterm elections and whether a new Congress will extend subsidies before they expire. Without intervention, double-digit Obamacare rate hikes could become the new normal.
Frequently Asked Questions
KFF analyzed rate filings in 10 states and found that insurers are proposing premium increases ranging from 8% to 18%, with a median of 12% for 2027 plans, marking another year of double-digit hikes.
Insurers cite rising medical costs driven by expensive prescription drugs like GLP-1s, hospital consolidation, and ongoing inflationary pressures. The enhanced premium subsidies from the Inflation Reduction Act are also set to expire, which could further increase net costs for enrollees.
Over 21 million Americans are currently enrolled in Affordable Care Act marketplace plans. If the proposed increases are approved, many will face higher premiums in 2027, especially if federal subsidies are not extended.
No. State insurance regulators will review the proposals over the summer and fall. They have the authority to negotiate lower rates before open enrollment begins November 1, 2026. Final approved rates typically are lower than initial proposals.
Consumers should compare plans during open enrollment, check eligibility for premium tax credits and cost-sharing reductions, and consider switching to a lower-tier plan (e.g., Bronze instead of Silver) if they can balance out-of-pocket costs. Working with a licensed broker or using the official HealthCare.gov tool can help find savings.
The enhanced premium subsidies enacted under the Inflation Reduction Act are currently set to expire after the 2027 plan year unless Congress passes legislation to extend or make them permanent.
