Why It Matters
Maryland residents relying on the Affordable Care Act marketplace face higher costs as federal subsidy protections expire, signaling a shift in affordability for individual health coverage.
What Happened
State insurance regulators approved an average 14.6% premium increase for individual ACA marketplace plans in Maryland for the 2027 plan year. The decision, announced Friday, follows a 13.4% rate hike implemented last year after Congress failed to renew enhanced federal tax credits that expired in December 2025.
Insurance carriers amended their initial rate proposals over the summer, requesting higher increases than those originally filed in May and June. The approved 14.6% average sits between the insurers’ final amended requests and the initial 13.7% average they sought earlier in the year.
Matthew F. Celentano of the League of Life & Health Insurers of Maryland noted that the approved rates align with market conditions following the loss of federal premium tax credits. “I think that the rates that were released today … reflect exactly what’s been brought Maryland’s way, following the expiration of the premium tax credits,” Celentano said.
By the Numbers
14.6% — Average premium rate increase approved for individual ACA plans in 2027
13.4% — Rate hike issued last year after federal credit expiration
10.2% — Average premium increase approved for small group plans
3% — Average premium increase for dental plans, down from a 6.5% request
274,000 — Current enrollment on the Maryland Health Connection, down from 294,000 last year
$34 — Monthly cost increase for a household of four with an Optimum Choice Bronze plan
$302 — Monthly cost jump for a family of four with a CareFirst Bronze plan
17.2% — Increase to monthly premium for the CareFirst Bronze plan example
Zoom Out
The rate adjustments reflect broader national trends as enhanced federal subsidies lapse without congressional renewal. Small group plans saw a 10.2% average increase, driven by rising inpatient hospital care and prescription drug costs. Dental premiums rose just 3%, significantly lower than the 6.5% insurers initially requested.
Enrollment on the Maryland Health Connection has already declined from 294,000 last year to 274,000 this year. Regulators anticipate further drops in participation next plan year as costs rise and federal financial assistance diminishes for higher-income households.
What’s Next
Insurance Commissioner Marie Grant urged consumers to review their coverage options carefully and avoid unauthorized health insurance plans that may not meet state standards. Households earning below 400% of the federal poverty level remain eligible for state subsidies, providing some buffer against the full impact of premium hikes.
“People need to shop and understand their options,” Grant said, emphasizing the importance of navigating the marketplace during open enrollment periods. The Maryland Insurance Administration will continue monitoring market stability as carriers implement the new rates for 2027.