Health insurance open enrollment underway: How much more people are paying for coverage in 2027

Health insurance open enrollment for millions of people is underway and some consumers may feel sticker shock as they sign up for 2027 coverage, according to price analysis reports. 

Big picture view:

People who are signing up for Affordable Care Act — also known as Obamacare — Marketplace health coverage, will see a second consecutive year of double-digit rate increases, according to a survey from KFF. But out-of-pocket costs will vary widely because most enrollees receive a subsidy that will cushion the cost increase. 

Some insurers have already backed out of the program as the expiration of enhanced premium tax credits have led to softer enrollment numbers. As of late October, 11 carriers had already announced plans to exit in at least one state, KFF found. Some states, including New Mexico, California, New Jersey, Rhode Island and Virginia, have offered state-funded subsidies to help offset the cost after the federal tax credits expire. 

Insurers blame a higher-than-usual increase in the underlying cost of care as a reason for the increases in rate filings. 

RELATED: Health insurance open enrollment: 5 things to review before choosing a plan

Affordable Care Act 

By the numbers:

ACA coverage is expected to rise 13% for 2027, compared with a 26% jump in 2026. In states that use the Healthcare.gov platform, benchmark silver premiums will increase 11%, but states that operate their own enrollment platforms are expected to show a 16% increase. 

KFF estimated the medium unsubsidized monthly premium stands at roughly $704 per person for 2027, up from $624 last year.

Those hardest hit with rate increases would be those who have incomes at 400% above the federal property level. For a single person in most states, 400% of the $15,960 federal poverty level would be an income at $63,840 or greater. Those enrollees no longer qualify for premium tax credits and must pay the full cost of coverage, KFF said.

Employer-sponsored health insurance

By the numbers:

Marsh, a leading professional services firm, released its annual survey of employer-sponsored health plans in September. Their survey, which received responses from more than 1,800 U.S. employers, found that the cost-per-employee for health coverage in 2027 is expected to increase 8.2% over 2026’s total. That’s even after employers implemented planned cost-reduction measures; without those adjustments, the cost would have risen by about 11%, employers estimated. 

That marks the fifth consecutive year of cost growth, and will also be the highest increase in those five years, the survey stated. 

Two-thirds of employers said they expected to raise their employees’ share of the cost of premiums, which means employees could see their paycheck deductions increase by more than the overall 8.2% increase, Marsh’s report stated. 

Sunit Patel, Marsh’s US Chief Actuary for Health and Benefits, said several factors continue to weigh on health benefit costs.

Those include continued advances in diagnostics and therapeutics that improve outcomes but often cost more than the treatments they replace. Patel also pointed to health system consolidation and lower government funding and reimbursements in public health programs. 

But cost growth was also driven by GLP-1 medications for weight management, he said.

Know before you sign up

What they're saying:

"The rates that you had the year before are probably not going to be the same," Mychal Walker, president of the National Association of Benefits and Insurance Professionals, said. "They're going to grow because of what's happening right now with inflation, the cost of healthcare from a provider standpoint, just the overall care and labor cost is going to make it increase a little bit.

Walker told FOX Business earlier this month that it’s important to look back at what you spent in 2026 to help anticipate what needs you may have in the new year. 

"You've got to look at it from a budgeting standpoint to see if the plan that you had before would fit within your financial budget and your expenditures, along with helping you make sure that you're covered for your healthcare needs."

RELATED: Health insurance scams to watch for during open enrollment

The Key Dates:

Open enrollment for ACA coverage began on Nov. 1 and continues through Jan. 15. However, if you need your coverage to begin on Jan. 1, you must complete enrollment by Dec. 15. After that date, and through Jan. 15, your ACA coverage would not begin until Feb. 1.

For employer-sponsored coverage, the deadlines will vary by employer, with most enrollment already underway. The deadline will vary per employer. 

But be sure to check with your employer on their deadline and whether they offer "passive enrollment." In passive enrollment, an employee who does not actively enroll for the next year will have their coverage from the current year carry over into the new year, but some features like health savings accounts and flexible spending accounts do not automatically carry over. 

Some employers, however, require active enrollment, meaning that missing the enrollment deadline would lock the worker out of employer health plans for the 2027 calendar year.

Be sure to check with your employer's human resources department to make sure you understand the deadline and the implications of not enrolling by that date.

 

 

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