Maryland’s Insurance Administration announced Friday that it will allow an average 14.6% increase in monthly premiums for individuals purchasing coverage through the Maryland Health Connection, the state’s Affordable Care Act (ACA) marketplace, for the 2027 plan year. The increase follows a 13.4% rise approved for 2026, which was driven by the expiration of enhanced federal premium tax credits in December 2025.
Impact on Maryland families
The state estimates that a household of four enrolled in an Optimum Choice Bronze plan could see a modest 3.5% increase – roughly $34 more per month – while a family with a CareFirst Bronze plan might face a 17.2% jump, adding about $302 to their monthly cost. Small‑group plans are also slated for a 10.2% average increase, largely reflecting higher inpatient hospital expenses and prescription‑drug costs. Dental coverage will rise 3% on average, down from the 6.5% increase insurers originally requested.
Why rates are rising
Insurance companies argue that higher premiums are necessary to remain solvent and to cover rising claims costs in a market with reduced federal assistance. Matthew F. Celentano, executive director of the League of Life & Health Insurers of Maryland, said the rates “reflect exactly what’s been brought Maryland’s way, following the expiration of the premium tax credits.” He emphasized that the credits were “critical for consumers” and helped keep health‑care costs down.
Enrollment trends
State data show enrollment on the Maryland Health Connection fell from about 294,000 last year to 274,000 this year, a decline regulators expect to continue into the next plan year. The drop in enrollment is cited as one reason insurers sought another year of steep rate increases.
Critics’ concerns
Vincent DeMarco, president of the Maryland Health Care for All coalition, warned that the state’s current actions are insufficient to offset rising premiums. He blamed “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,” adding that soaring hospitalization and drug costs exacerbate the problem.
State assistance options
Insurance Commissioner Marie Grant urged Marylanders affected by the hikes to explore available subsidies. Households earning less than 400% of the federal poverty level may qualify for state subsidies that can lower monthly premiums. Grant also cautioned consumers to avoid unauthorized insurance plans and to carefully compare options, noting that actual rates can vary based on age, family size, and plan type.
Looking ahead
The approved increases represent a compromise: insurers originally sought an average 13.7% rise, later amending requests upward, while regulators settled on a 14.6% average increase for individuals and a lower 10.2% rise for small‑group plans. The state’s next steps will likely involve monitoring enrollment trends, assessing the impact of subsidies, and addressing the broader affordability challenges highlighted by consumer advocates.
Original reporting: Alexandria, VA News – WTOP News — read the source article.
