Maryland Health Insurance Premiums to Rise 14.6% in 2027
- State regulators approved an average 14.6% premium rate increase for individual plans on the Maryland Health Connection for the 2027 plan year, compounding a 13.4% hike from the previous year.
- The rate increases follow the expiration of enhanced federal premium tax credits in December 2025, which left many consumers struggling to afford healthcare coverage.
- Small group market plans will see an average 10.2% increase, while dental plans face a 3% average hike, driven largely by inpatient hospital care and pharmaceutical costs.
Compounding Cost Pressures on the Maryland Health Connection
For the 274,000 Marylanders who purchase plans on the state marketplace under the Affordable Care Act, known as the Maryland Health Connection, the new approved rates build directly on last year’s 13.4% rate increase. That prior hike was issued in response to the expiration of federal tax credits that helped keep plans affordable. Without those enhanced federal tax credits, which expired in December 2025 after Congress failed to renew them, more residents struggle to maintain coverage, leading some to downgrade policies or drop insurance entirely.
Insurance companies maintain that the increased rates are necessary to stay solvent and cover medical claims amidst reduced federal funding for rising healthcare and prescription drug expenses. Matthew F. Celentano, executive director of the League of Life & Health Insurers of Maryland, stated that the rates reflect the impact of the expired subsidies. Celentano noted that the federal tax credits were critical for consumers and in keeping healthcare costs down.
Evaluating the Approved Rates Versus Carrier Requests
The approved 14.6% average rate increase for individual plans exceeds the 13.7% average increase initially requested by health insurance companies in May and June 2026. Over the summer, carriers amended their proposals to ask for even higher adjustments. State insurance officials stated that the final approved average of 14.6% is lower than the totals requested in those amended filings.
Alongside individual policies, regulators approved an average 10.2% premium increase on small group plans purchased through the state market. These small group increases stem primarily from elevated inpatient hospital care utilization and rising prescription drug costs. Meanwhile, dental plans on the exchange will see a 3% average premium increase, which is lower than the 6.5% average hike requested by carriers.
Impact on Household Budgets and Market Enrollment
Financial impacts on family budgets will vary depending on the insurance carrier, plan type, household size, and income level. State insurance officials estimate that a household of four with an Optimum Choice Bronze plan may experience a 3.5% rate increase, pushing monthly premiums from $975 to $1,009, a difference of $34 per month. Conversely, a family of four enrolled in a CareFirst Bronze plan could see monthly costs rise by $302, reflecting a 17.2% premium increase. These estimates do not factor in potential subsidies that could lower monthly costs for qualifying households.
Escalating healthcare expenses continue to strain household budgets across the state, forcing difficult decisions regarding coverage levels. Enrollment on the Maryland Health Connection declined from 294,000 last year to 274,000 this year, a downward trend that regulators anticipate will persist into the upcoming plan year and further motivate insurers to request higher rates.
Vincent DeMarco, president of the Maryland Health Care for All coalition, criticized the market developments. In a written statement, DeMarco said, “We are disappointed that Marylanders will pay higher insurance premiums because of bad decisions by the Trump Administration and Congress, especially their failure to extend critically needed health care tax credits and cuts they made in eligibility. This is exacerbated by rising hospitalization and pharmaceutical costs.” DeMarco added that the state cannot continue to protect residents without additional revenue for healthcare and legislative action to address prescription drug prices.
Insurance Commissioner Marie Grant urges Marylanders affected by the rate adjustments to thoroughly review and explore available plans offered through the state’s Affordable Care Act marketplace to find coverage options suited to their financial and medical needs.
*Disclaimer: The information provided in this article is for educational and scientific communication purposes only and does not constitute medical advice. Always consult with a qualified healthcare provider regarding any medical condition, diagnosis, or treatment plan.*