Overview
- The Minnesota Department of Commerce finalized 2027 rates on Thursday, Oct. 1, approving an average statewide increase of 17.4% with top approved hikes just over 21% that will affect about 203,000 individual‑market enrollees and 184,000 people in small‑group plans.
- Every approved carrier must raise premiums by at least about 10%, with individual market increases ranging roughly 9.9% to 21.1% and small‑group increases roughly 10.6% to 21.4%.
- Minnesota’s Premium Security Plan, a state reinsurance program, reduced insurers’ originally filed average increase from about 57.9% to the approved 17.4%, showing state intervention lowered but did not eliminate large requested hikes.
- Officials say the main cost drivers are higher prices for prescription drugs, rising provider payments, labor and inflation, and analysts link the end of enhanced ACA tax credits to lower marketplace enrollment and a higher uninsured rate; recent federal Medicaid and immigrant eligibility changes have also removed coverage for some people.
- Open enrollment for 2027 plans begins Nov. 1 and new premiums take effect Jan. 1, 2027, which could raise out‑of‑pocket monthly costs for older adults, rural residents and small‑business employees and increase the risk of coverage loss unless policy relief or subsidies change.