Why Are Health Insurance Premiums Going Up in 2027?

If your 2027 renewal notice showed a higher price, you're not alone. Two things are happening at once: insurers are raising their rates, and many people are getting less financial help than they did in 2025. Here's what's driving the increase and what you can do about it.

Reason 1: Insurers raised their rates

Every year, insurers file new rates with state regulators. For 2027, increases in many states are in the double digits before subsidies. A few examples from the states I serve:

• Arizona: a proposed weighted average of about 29%, one of the largest in the country.
• Alabama: roughly 25% on average.
• Montana and Mississippi: around 22%.
• Utah and Iowa: closer to 7%.

Insurers point to higher medical and prescription costs, and to healthier people leaving the market as financial help shrinks, which leaves a costlier group to cover. Your own increase depends on your state, your insurer, and your plan. You can find details on your state's health insurance page.

Reason 2: Enhanced tax credits expired

From 2021 through 2025, enhanced federal premium tax credits made marketplace plans much cheaper, and there was no income cap. Those enhancements expired at the end of 2025. That means:

• Households earning more than 400% of the federal poverty level generally no longer qualify for any premium tax credit, the so-called "subsidy cliff."
• Most people who still qualify are expected to pay a larger share of their income toward their premium than before.

For some households, losing the credit costs more than the rate increase itself.

Reason 3: Your plan or insurer may be changing

Some insurers are leaving marketplaces at the end of 2026. If your plan is discontinued, the plan you're moved into automatically may cost more or have a different network.

What you can do about it

1. Don't just accept the renewal. Compare similar plans. A plan from a different insurer, or a different metal tier, may cost less for the same doctors.
2. Re-check your income estimate. If you're near the 400% line, deductible contributions to a retirement account or an HSA can lower the income used for tax credits.
3. Look at Bronze and Gold, not just Silver. Depending on how your state prices plans, Bronze or Gold may be a better value after tax credits.
4. Consider a private plan if you're healthy. If you don't qualify for much financial help, a private plan outside the marketplace may cost less. Private plans ask health questions, so eligibility depends on your answers. If a private plan isn't the right fit, an ACA plan is always an option.
5. Check for state help. Colorado, Maryland, and Virginia (new for 2027) offer state premium assistance on top of federal credits.

Get help comparing your options

Open Enrollment for 2027 runs November 1, 2026, through January 15, 2027, in most states (see your state's deadline). I'll compare ACA and private options side by side and show you what you'd actually pay in a year. My help is free.