Many Americans who rely on Affordable Care Act (ACA) health insurance may face another year of double-digit premium increases in 2027, according to a new analysis. The median proposed premium increase for 2027 is 14% across 77 insurers in the ACA program that have submitted rate filings.

Driving Factors

Insurers cited rising healthcare costs, federal regulatory changes, and the recent expiration of pandemic-era enhanced subsidies as the main factors driving premiums higher. The expiration of these subsidies has led to a significant jump in premiums, with some enrollees seeing their costs double or triple.

The analysis found that insurers listed rising costs across the healthcare sector, including hospital visits, prescription drugs, and sicker patients, as the biggest cause of rising premiums. Overall inflation has also contributed to the pressure, driving prices higher across the entire economy.

Impact on Enrollees

The rate increases will likely affect middle-class enrollees who make 400% of the poverty level or more, as they will face an especially stark increase in costs. Many Americans who do not qualify for subsidies will be hit the hardest, as they will have to pay the full premiums.

The ACA marketplace has shrunk by more than 2.5 million people over the past year, with some states seeing declines of nearly a third of their enrollee population. This decline is largely due to the expiration of enhanced subsidies, which has led to healthier individuals leaving the marketplace and leaving behind sicker patients who require more expensive care.

Original reporting: NBC4 Los Angeles — read the source article.