Health insurers propose high rate hikes for 2027 Minnesota plans

June 25, 2026 - 02:10

Minnesota residents could see a significant jump in their health insurance premiums in 2027, as insurers have proposed some of the largest rate hikes in recent years. The filings, submitted to state regulators, outline increases that range from double-digit percentages to more than 20 percent for certain individual and small-group plans.

Policy analyst Matt McGough with KFF Health News discussed the reasons behind the proposed hikes during a Wednesday appearance on Morning Edition. He pointed to several key factors driving the increases, including rising medical costs, higher prescription drug prices, and the lingering financial impact of the pandemic on healthcare utilization. Insurers are also adjusting for changes in the federal risk adjustment program, which redistributes funds among plans to balance out the cost of covering sicker patients.

For consumers, the proposed rates could mean a substantial financial burden. McGough noted that while federal subsidies under the Affordable Care Act help cushion the blow for many, those who do not qualify for assistance would feel the full weight of the increases. The Minnesota Department of Commerce will review the filings over the coming months and has the authority to reject or modify the proposed rates before they take effect in 2027. Public hearings are expected to be part of that process, giving residents a chance to voice concerns.