Health insurance rates expected to climb again for Minnesotans in 2027

Health insurance premiums for thousands of Minnesotans are expected to increase in 2027.

The proposed rate hikes are primarily driven by rising healthcare costs, inflation, and the expiration of enhanced Affordable Care Act tax credits that previously made coverage more accessible for many consumers.

Premium increases would affect Minnesotans who purchase either individual or small group health insurance directly from insurers or through MNsure, Minnesota's health insurance marketplace.

Insurers in the ACA marketplace are requesting a median rate increase of about 15 percent across all 50 states in 2027. This marks the second consecutive year of double-digit premium hikes, according to an analysis by KFF, a nonprofit health policy research, polling, and news organization.

Preliminary rate filings from the Minnesota Department of Commerce indicate that the state's insurers are seeking average premium increases ranging from 10 percent to 13 percent for 2027 plans on the individual market, and between 7 percent and 21 percent on the small group market.

"We had some unprecedentedly high rate increases last year. But these are still on the higher end; they're over 10 percent, and that's significant for a lot of Minnesotans," Minnesota's temporary commissioner of commerce Julia Dreier said.

Rate increases would affect hundreds of thousands

About 200,000 Minnesotans get health insurance through the small group market, which includes businesses with two to 50 full-time employees. Additionally, around 190,000 state residents are covered by the individual health insurance market, available to those who do not qualify for employer-sponsored plans or public programs like Medicare or Medicaid.

One of the state's carriers, Medica, has proposed the highest increase in the individual market at 13 percent, while others, including Blue Plus, HealthPartners and Quartz, are requesting adjustments between 10 percent and 12 percent.

Health insurance costs can vary based on where a person lives in the state and their family's specific needs.

"We have rating regions," Dreier said. "So, if you live in Duluth, you might pay a different rate for the same plan than what you would pay in the Twin Cities metro area."

She also mentioned that insurance companies can adjust prices based on age, within certain restrictions, and may charge higher premiums to older individuals.

Expiring tax credits add pressure

The proposed rate increases follow President Donald Trump's extensive tax and spending package that cut nearly $1 trillion from Medicaid last year, a move that is expected to have widespread consequences, resulting in nearly 12 million Americans becoming uninsured over the next decade.

At the end of 2025, Congress chose not to extend the federal ACA enhanced premium tax credits.

Congress created the enhanced subsidies in 2021 during the COVID-19 pandemic. They increased the value of existing ACA tax credits and eliminated the previous income cap, allowing more people to qualify for financial assistance through marketplaces such as MNsure.

The expiration of these tax credits led to a decrease in enrollment in 2026, according to KFF. Healthier enrollees were more likely to drop their coverage as a result. Consequently, MNsure health insurance enrollment fell by over 17,000 in May 2026 compared to May 2025. Insurers in the individual market expect further deterioration in 2027 due to the expiration of these enhanced tax credits.

Data from the Minnesota Health Access Survey show that the percentage of Minnesotans who went without health insurance increased from 3.8 percent in 2023 to 5.8 percent in 2025. This represents approximately 116,000 additional individuals without insurance, indicating that the state's uninsured rate has climbed from an all-time low to the highest level in six years.

The trend has raised concerns that rising premiums and reduced financial assistance could lead to further losses in coverage.

Final rates expected in October

The proposed rates are not yet final. The Minnesota Department of Commerce is reviewing insurers' filings to determine whether the requested increases are supported by the companies' underlying data and projected costs.

Dreier said insurers can adjust their proposed rates during the summer as the review continues.

The state is expected to release final 2027 health insurance rates by Oct. 1. The new rates will apply to coverage beginning Jan. 1, 2027.

Minnesotans can submit public comments as part of the rate review process by emailing [email protected].