Maryland health insurers want to raise premiums an average 13.7% for individual plans in 2027

Marylanders who purchase individual healthcare plans on the state's insurance marketplace may see another year of higher monthly costs as health insurers have requested an average rate increase of 13.7% across plans in 2027.

The Maryland Insurance Administration announced Friday that, for the second year, healthcare carriers are proposing high premium rate increases following the expiration of a popular federal tax credit that helped keep some plans on the state insurance marketplace more affordable.

"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," said Maryland Insurance Commissioner Marie Grant in a Friday statement.

"Our team of actuaries will closely examine the assumptions behind the rate requests over the coming months to determine whether they are justified," she said.

The rate increase proposal affects individuals and households that purchase plans on the Maryland Health Benefit Exchange, which operates Maryland's Affordable Care Act marketplace.

Last year, healthcare carriers came to state insurance officials with a proposal to raise premiums an average of 17%, citing anticipated affordability challenges and enrollment decreases as the enhanced federal tax credits expired at the end of 2025.

The Maryland Insurance Administration agreed to an average 13.4% premium rate increase for 2026 healthcare plans instead, which was still a hefty monthly cost increase for many Marylanders.

This year, insurance companies are starting with a slightly lower proposal for premium rate increases that could affect around 282,000 Marylanders on individual ACA plans.

The exact proposals vary depending on carrier, plans, household income and other factors.

For example, a 40-year-old resident of the Baltimore metro region on a CareFirst gold plan could see their rate jump 14.7%, resulting in a $95 increase to their monthly premium of $649.

On the other hand, if that 40-year-old chose a bronze plan with Kaiser their premiums could bump up 9.6%, with an additional $31 added to their monthly charge of $328.

A family of four in the same region could see their household monthly cost increase between $100 and $300, depending on plan and insurance carrier.

Insurance carriers are also proposing an average 13.1% premium rate increase next year for the small group markets used by small business owners. State insurance officials already approved midyear rate increases for CareFirst and United Healthcare's small group plans.

Thousands of Marylanders downgraded health plans on ACA marketplace amid rising premiums

The Maryland General Assembly set aside state funding to offset the impact of the federal tax credit expiration for some families that had previously benefited from it from this year and into next year.

For 2026, the state subsidy was able to replace 100% of the enhanced federal tax credits for those under 200% of the federal poverty level, but just 50% of the tax credits for those between 250% and 400% of the federal poverty level.

"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," Grant said in the written statement Friday.

But Maryland's ongoing tight state budget may require those subsidies to be less generous in 2027, and it's not clear if they will continue into 2028.

The insurance administration is inviting Marylanders to provide public comments on the proposed rate increases offered by health insurance carriers.

The administration is hosting a virtual public hearing on July 23, and a written public comment period for the public hearing will be open until July 17.

Based on those public comments and future discussions with carriers, the Maryland Insurance Administration will either approve the proposed rates or approve alternative rates, potentially by September.

Courtesy of Maryland Matters