Health insurers in Michigan are looking to do yet another round of big rate hikes next year.
A new report from the Michigan Department of Insurance and Financial Services, released on Friday, July 17, shows that health insurance plans covering nearly 800,000 Michiganders are seeking regulators’ approval for significant rate increases for 2027.
The proposed premium increases would average 14.2% for individual policies, including those sold on the Healthcare.gov website, which some call “Obamacare.” Last year, insurers won approval for an average 20.2% rate increase on those policies for the current year.
For small group policies — those for businesses and organizations with fewer than 51 employees — the average rate increase would be 9.6%, or a bit less than last year’s approved 11.1% increases.
Health insurance companies are seeking similarly large increases in other states.
A recent analysis by the Kaiser Family Foundation found that insurance companies in 16 states and the District of Columbia are proposed a median premium increase of about 14% for their 2027 individual plans sold on Healthcare.gov.
However, not everyone who enrolls in such a plan will face the full brunt of such an increase, as the Affordable Care Act’s tax credit subsidies can cover much of the increased costs for those enrollee with qualifying incomes.
Blue Cross Blue Shield of Michigan, the state’s largest insurer, is seeking average rate increases of 12.9% for its individual market plans and 12.5% for its individual market Blue Care Network HMO plans, together covering 162,421 enrollees.
For small groups, The Blues is seeking an average increase of 7% and an 10.7% increase for its small groups HMO plans, together covering 267,091 enrollees.
In a statement, Blue Cross said their new rate filings reflect increasing medical and pharmacy claims trends.
Major factors driving the premium increases include an anticipated 10% rise in the cost of medical care andprescription drugs for 2027.
“Helping Michigan families access high-quality, affordable health coverage remains our top priority,” Bill Tuthill, vice president of Individual Business for Blue Cross, said in a statement. “Our rate filing reflects the expected cost of caring for our members in 2027, which has increased as additional medical and prescription drug data has become available this year.”
The Michigan Department of Insurance and Financial Services is accepting public comments on the proposed rate increases until Aug. 1 via email at DIFS-healthratecomments@michigan.gov.
Contact JC Reindl: 313-378-5460 or jcreindl@freepress.com. Follow him on X @jcreindl.
This article originally appeared on Detroit Free Press: Michigan health insurers seek large rate hikes for 2027
Reporting by JC Reindl, Detroit Free Press / Detroit Free Press
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By JC Reindl, Detroit Free Press | USA TODAY Network
