Health insurance for many Oregonians could get a lot more expensive next year

Oregonians who buy their own health insurance or get coverage through a small business employer could be staring down another year of sharp premium increases, as insurers seek some of the largest rate hikes in recent memory.

Filings released this week show insurers are seeking average premium increases of about 17% for both groups.

In documents submitted to state regulators, they blame higher medical spending, inflation, uncertainty over federal policy, tariffs that raise the cost of prescription drugs and medical equipment and shrinking enrollment that leaves fewer people to share the costs.

For people who buy their own coverage on the individual market through the state’s Affordable Care Act marketplace, commonly known as Obamacare, insurers are seeking an average rate increase of 17.5% next year. That’s nearly double last year’s nearly 10% average increase.

The proposed increases vary widely.

Moda Health, which covers about 35,000 people in Oregon’s individual market, is seeking the largest average increase at 25%. If regulators sign off, a 40-year-old Portland resident enrolled in Moda’s standard silver plan would see their monthly premium jump from about $540 this year to roughly $695 next year.

BridgeSpan, a much smaller player with only about 100 individual market members, is seeking the smallest average increase at just under 12%. A 40-year-old in the Portland area enrolled in the company’s standard silver plan would pay nearly $690 a month next year, about $70 more than this year.

The proposed increases come as Oregonians who buy their own health insurance rather than get it through an employer face fewer choices.

Providence Health Plan and PacificSource Health Plans are pulling out of the individual market at the end of this year, reducing the number of insurers selling those plans from six to four.

State officials say every county will still have at least three insurers to choose from. Moda, Regence BlueCross BlueShield of Oregon and BridgeSpan will sell plans statewide, while Kaiser Permanente will offer plans in 11 counties.

Meanwhile, small employers would face similar pressure, with steep premium hikes rippling through their budgets. Even when businesses pay part of the monthly premium, higher rates still mean bigger bills for both employers and workers.

Six insurers in the small group market, which serves companies with 50 or fewer employees, are asking for an average net increase of 17% for 2027 – up from last year’s 11.5%.

UnitedHealthcare is seeking the steepest increase, nearing 29%, which would affect more than 7,200 workers and their families. According to state estimates, a 40-year-old enrolled in a UnitedHealthcare silver plan through their job in Portland could see their monthly premium go from $613 to $800.

Kaiser Foundation Health Plan of Northwest is seeking the smallest increase at 9.5%, which would bring the monthly premium for a 40-year-old employee in Portland on a standard small-group silver plan to about $509.

Those proposed hikes reflect a familiar dynamic. As fewer people stay enrolled, insurers say they’re splitting growing medical bills among a smaller crowd, which ends up pushing premiums higher for everyone left in the pool.

Enrollment among Oregonians who buy their own health insurance fell from about 161,000 people in 2025 to roughly 140,000 this year. State officials say the expiration of pandemic-era federal subsidies at the end of last year left many consumers with smaller tax credits and some with no help at all. That drove premiums higher and pushed some Oregonians to buy leaner plans or drop coverage.

Officials say a similar slide is playing out in the small-group market, where enrollment has fallen from about 142,000 people last year to roughly 134,000 this year.

“Oregon consumers are facing challenging times with expiring premium tax credits, rising health insurance rates across the country, and two carriers leaving the Oregon market,” TK Keen, the state’s insurance commissioner, said in a statement.

Still, Keen said the state’s reinsurance program – which helps insurers pay some of their most expensive medical claims – is helping soften the blow. He estimates the program is keeping premiums almost 10% lower than they would be.

The proposed rate hikes are not final. Regulators with the Oregon Division of Financial Regulation will spend the next few months reviewing insurers’ filings, financial data and cost projects before deciding whether the requested increases are justified.

Most people who get health insurance through a large employer get it outside the state health marketplace, so their rates aren’t subject to the state’s annual review process.

The state agency will also hold a virtual public meeting at 2 p.m. July 13, where each insurer will explain its rate hike request and take feedback from consumers. People can email comments to [email protected] through July 13, and a link to watch the meeting will be posted on oregonhealthrates.org closer to that date.

Officials say they expect to make final decisions in September.

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