Marylanders purchasing individual healthcare plans on the state’s insurance marketplace may be faced with increased monthly costs as health insurers have proposed an average premium rate hike of 13.7% for 2027. This announcement from the Maryland Insurance Administration marks the second consecutive year of significant rate increases, following the lapse of a federal tax credit program that previously helped make some health plans more affordable.
Maryland Insurance Commissioner Marie Grant highlighted the impact of the expired federal tax credits, which were not renewed by Congress or the previous administration, contributing to the steep rate proposals. She stated that the agency’s actuaries will conduct a thorough review of the assumptions behind these requests in the coming months to determine their validity.
The proposed rate hikes vary by insurance carrier and other relevant factors, affecting individuals and households who buy plans through the Maryland Health Benefit Exchange, which operates the state’s Affordable Care Act marketplace. Last year, the market saw a proposal for a 17% premium increase, attributed to anticipated challenges in affordability and expected enrollment decreases due to the end of enhanced federal tax credits. Ultimately, the Maryland Insurance Administration approved a lower average increase of 13.4% for 2026 plans, which still resulted in significant financial strain for many residents.
This year, insurance companies are starting with a somewhat reduced proposal, affecting an estimated 282,000 Marylanders enrolled in individual ACA plans. The precise increase depends on the insurer, plan type, household income, and other criteria. For instance, a 40-year-old in the Baltimore metro area on a CareFirst gold plan may see a premium increase of 14.7%, totaling an additional $95 added to their current monthly premium of $649. Conversely, if the same individual opted for a bronze plan with Kaiser, their premiums might rise by 9.6%, an increment of $31 to their existing $328 monthly payment. Families could experience increases in their monthly costs ranging from $100 to $300 based on their chosen plan and insurance provider.
Additionally, insurance carriers have proposed an average rate increase of 13.1% for small group markets, affecting small business owners. State insurance officials have already approved mid-year rate increases for small group plans from CareFirst and UnitedHealthcare.
In response to the federal tax credit expiration, the Maryland General Assembly allocated state funds to help mitigate the impact on families that previously benefited from these credits. For 2026, the state subsidy managed to cover 100% of the enhanced federal tax credits for those earning under 200% of the federal poverty level, and 50% for those between 250% and 400% of that threshold. Commissioner Grant commended the proactive measures taken by Governor Wes Moore and the Assembly, noting that without these state-based subsidies, Marylanders would endure even higher premium and out-of-pocket costs.
However, budget constraints within the state might lead to less generous subsidies in 2027, and uncertainty looms over the continuation of these supports into 2028. The Maryland Insurance Administration is currently inviting public feedback on the proposed premium increases from health insurers. A virtual public hearing is scheduled for July 23, with a written comment period open until July 17. Based on feedback from the public and ongoing discussions with insurance providers, the administration aims to finalize decisions on the proposed rates by September.
