Maryland health insurance rates could rise 13.7% in 2027 under proposal

Maryland residents who buy health insurance through the Affordable Care Act marketplace could see higher premiums next year, with insurers requesting an average rate increase of 13.7% for 2027, according to filings submitted to the Maryland Insurance Administration.

The proposed increases would affect about 482,000 Marylanders enrolled in individual, non-Medicare supplemental and small-group health plans, according to the administration. The requested increases are not final and must be reviewed and approved by state insurance regulators before taking effect.

Health carriers cited rising healthcare costs, the loss of enhanced federal tax credits, and changes to federal marketplace rules as factors behind the proposed increases.

“The significant rate increases filed with the Maryland Insurance Administration for the second year in a row reflect the loss of enhanced federal tax credits, which were not extended by Congress and the Trump Administration last year,” Maryland Insurance Commissioner Marie Grant said in a statement. “Without the proactive steps by Governor Wes Moore and the Maryland General Assembly to enact a state-based subsidy for 2026 and 2027, Marylanders would see significantly higher increases in premiums and out-of-pocket costs.”

The proposed increases range from 12% to 14.6% among insurers in the individual market. CareFirst BlueChoice requested a 14.3% increase, CareFirst’s PPO plans requested 14.6%, Kaiser requested 12%, Optimum Choice requested 13.5%, and Wellpoint Maryland requested 12.8%.

State officials said Maryland’s premiums remain among the lowest in the country. According to the health policy organization KFF, Maryland had the lowest-average premiums for the least expensive bronze and gold plans in the nation in 2026, and the second-lowest average silver plan premiums.

The state created a subsidy program through Maryland Health Connection to help offset the expiration of enhanced federal subsidies. The program replaced the full value of enhanced federal subsidies for residents below 200% of the federal poverty level and replaced half of the subsidies for some residents between 250% and 400% of the poverty level for 2026. Officials expect the program to continue into 2027, though the amount could change.

Small businesses also could see higher costs. Insurers requested an average increase of 13.1% in the small-group market, which covers employers with 50 or fewer full-time equivalent workers. Requested increases ranged from 4.1% to 20.7% among carriers.

The Insurance Administration previously approved smaller-than-requested midyear rate increases for some small-group plans in 2026 after reviewing higher-than-expected hospitalizations and medical costs.

“The Maryland Insurance Administration is required to consider mid-year Affordable Care Act rate adjustments by carriers serving small businesses based on changes in the market,” Grant said. “Our team carefully analyzed the requests and determined that some level of rate changes were justified based on significantly higher than expected claims and health care costs.”

State regulators will review the proposed rates over the coming months. A public hearing is scheduled for July 23, and the administration expects to make final decisions in September.

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