Marylanders who purchase individual health care plans on the state’s insurance marketplace will see a second year of double-digit increases to their monthly healthcare costs, after state insurance officials said Friday they have approved a 14.6% average premium rate increase across plans in 2027.
For the 274,000 Marylanders who purchase plans on the state’s insurance market under the Affordable Care Act, called the Maryland Health Connection, the new approved rate increases will compound on last year’s 13.4% rate hike that was issued in response to the expiration of federal tax credits that helped keep some plans more affordable.
Without those tax credits, more Marylanders struggle to afford their healthcare plans, leading some of them to downgrade their coverage or go without insurance, experts say, which further puts pressure on the healthcare system.
Insurance companies say the increased rates are needed to stay solvent and pay claims at a time when there is less federal funding to help offset rising healthcare and prescription drug costs.
“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,” said Matthew F. Celentano, executive director of the League of Life & Health Insurers of Maryland.
He’s referring to the enhanced federal tax credits that expired in December 2025 after Congress failed to renew them. Celentano said the tax credits were “critical for consumers” and in helping keep healthcare costs down.
The 14.6% average rate increase approved by state insurance regulators on individual plans is actually higher than the 13.7% average increase initially requested by health insurance companies in May and June. But over the summer, insurance companies amended their rate proposals asking for even higher rate increases.
State insurance officials say that the approved average rate increase of 14.6% is lower than what insurance companies ultimately asked for in their amended requests.
The approved rate increases announced Friday include an average 10.2% premium increase on small group plans purchased on the Maryland insurance market. Increases in the small group market plans were driven largely by increased inpatient hospital care and rising prescription drug costs.
Dental plans purchased on the insurance market will also see an 3% average premium increase, down from the 6.5% average increase requested by insurance companies.
Just how much the premium rate increases impact family budgets will vary based on several factors, including insurance carrier, plan type, household size and income.
For example, a household of four with an Optimum Choice Bronze plan may see a 3.5% rate increase, raising their monthly premium from from $975 to $1,009 a month, state insurance officials estimate, or a $34 per month increase. But a family of four with a CareFirst Bronze plan may see their monthly healthcare costs jump $302, with a 17.2% increase to their monthly premium.
The Maryland Insurance Administration notes that those examples do not take into account any subsidies that could lower monthly premiums for qualifying households.
But rising costs in healthcare and other industries are straining Maryland household budgets, leaving them to make hard decisions of moving to a lower coverage plan or dropping their plans altogether.
Maryland insurance regulators say that enrollment on the Maryland Health Connection dropped from 294,000 last year to 274,000 this year.
The drop in enrollment is expected to continue into next plan year – an additional reason why insurance companies asked for another year of steep rate increases, according to Maryland insurance regulators.
Vincent DeMarco, president of the Maryland Health Care for All coalition warns that the current state efforts are not enough to keep up with rising premiums and healthcare costs.
“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 said in a written statement.
“Maryland cannot continue to protect our people without additional state revenue for health care and action to rein in skyrocketing drug costs,” his statement said.
Insurance Commissioner Marie Grant urges Marylanders affected by the rate increases to explore plans offered on the state’s Affordable Care Act marketplace. Those with household incomes that fall below 400% of the federal poverty level can qualify for state subsidies that may keep costs lower.
Grant also warns Marylanders to be wary of unauthorized health insurance plans in their search for more affordable insurance coverage.
“People need to shop and understand their options,” Grant said. “That (14.6% increase) may not be the rate you see – depending on your age, your family structure, your plan.”
Maryland Matters is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Maryland Matters maintains editorial independence. Contact Editor Steve Crane for questions: info@marylandmatters.org.
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