Health insurance premiums set to rise sharply for most Americans in 2027
Premiums for ACA marketplace plans, employer-provided coverage, and Medicare prescription drug plans are expected to increase significantly in 2027, driven by higher medical and drug costs.
Most Americans will face higher monthly health-insurance costs in 2027, whether they are covered through the Affordable Care Act (ACA) exchanges, employer-based plans or Medicare, analysts said. Insurers filing public rate notices propose an average 15% increase for ACA plans next year, following a 20% rise in 2026, according to a KFF analysis. The hikes reflect rising hospital prices, physician fees and the growing use of expensive prescription drugs, including GLP-1 weight-loss medications.
The White House announced a $500 rebate check for roughly one million ACA enrollees, but experts noted the amount is small relative to the premium increases. "The $500 check pales in comparison to the increased premiums that marketplace enrollees are facing due to the expiration of the enhanced subsidies," said Miranda Yaver, an assistant professor of health policy and management at the University of Pittsburgh.
Employers also anticipate higher benefit costs. A Marsh survey of more than 1,800 firms found they expect an average 8.2% rise in the cost of providing health benefits per employee in 2027, the largest increase since 2003. Dr. Kevin Schulman of Stanford University explained that employers may shift some of those costs to workers through higher premiums, larger deductibles or reduced wage growth.
For Medicare beneficiaries, the Centers for Medicare & Medicaid Services projects a 6% increase in the baseline monthly Part D prescription-drug premium for 2027, from $38.99 to $41.33. The rise follows the termination of a temporary federal program that had lowered Part D premiums by about 40% last year.
Consumers are advised to review the full cost of plans during open enrollment, as lower premiums may be offset by higher out-of-pocket expenses.