Marylanders Face Another Year of Rising Health Insurance Premiums

Residents of Maryland who purchase individual health insurance through the state marketplace are looking at a second year in a row with significant premium hikes, as regulators have approved an average increase of 14.6% for 2027.

Around 274,000 people in Maryland rely on individual plans via Maryland Health Connection, the state’s marketplace for the Affordable Care Act. This recent increase follows a 13.4% rise in premiums approved for 2026, coinciding with the expiration of federal tax credits that had previously made certain plans more affordable.

Experts warn that without those enhanced credits, many Marylanders might find it increasingly difficult to maintain their coverage. This could lead some to opt for plans that offer fewer benefits or, in some cases, forgo insurance altogether, creating additional challenges for the healthcare system.

Insurance companies justify the premium increases as necessary to stay financially viable and to cover claims, especially as federal support diminishes while healthcare and prescription drug costs continue to rise.

Matthew F. Celentano, executive director of the League of Life & Health Insurers of Maryland, expressed that the newly released rates reflect the current reality following the end of those premium tax credits. He labeled the credits as “critical for consumers,” highlighting their role in keeping healthcare costs manageable.

The approved average increase of 14.6% for individual plans was actually higher than the initial 13.7% increase that insurers requested earlier this year. However, it’s still lower than the adjusted amounts they requested later on.

Additionally, regulators sanctioned a 10.2% average premium rise for small-group plans sold through the Maryland insurance market, attributing these increases to soaring inpatient hospital and prescription drug costs.

For dental plans within the marketplace, a more modest average increase of 3% was approved, in contrast to the 6.5% increase that insurers initially sought.

The impact of these premium hikes on household budgets will vary, depending on factors like the insurance company, plan type, household size, and income. With healthcare costs already burdening many Maryland families, some are contemplating plans that offer less coverage or even dropping their insurance entirely.

Enrollment numbers through Maryland Health Connection have decreased from 294,000 last year to 274,000 this year, according to state insurance regulators, and a continued decline is expected next year—another factor behind the insurers’ calls for steep rate increases.

Vincent DeMarco, president of the Maryland Health Care for All coalition, criticized current state efforts as inadequate in addressing rising healthcare costs and premiums.

He expressed disappointment over the fact that Marylanders will face higher insurance premiums due to what he termed poor decisions from the Trump Administration and Congress, particularly their failure to extend essential health care tax credits and changes in eligibility. Rising costs for hospital stays and medications are compounding these issues.

“Maryland cannot continue to protect our people without additional state revenue for health care and action to rein in skyrocketing drug costs,” DeMarco emphasized.

Insurance Commissioner Marie Grant advised Maryland residents affected by the rising premiums to take the time to compare plans offered in the state’s Affordable Care Act marketplace. She noted that households earning below 400% of the federal poverty level might still qualify for state subsidies that could help mitigate costs.

Grant also cautioned consumers to be vigilant about unauthorized health insurance plans while searching for more affordable options.

“It’s important for people to shop around and understand their choices,” she remarked. “That 14.6% increase may not reflect what you actually see, as it can vary based on factors like age, family structure, and specific plans.”