Consumers should expect health care premiums to rise next year.
The Kaiser Family Foundation (KFF) just released a new report showing insurers through the ACA marketplace (also known as Obamacare) may hike insurance premiums by as much as 15% in 2027.
In 2010, Obamacare was sold as a way to drive down cost, but according to KFF, this latest round would mark the second straight year of double-digit increases, following a median increase of 20% for 2026.
Costs are rising for many reasons. Inflation, labor shortages, a sicker insurance pool, the cost of medical services, prescription drugs, and the expiration of COVID-era premium tax credits that ended in 2025.
Rx drugs are making prices higher. Mental health and substance use disorder treatment has increased.
One underreported factor is the number of smaller groups looking to self-fund their own plans outside the ACA marketplace.
“One reason insurers say the fully-insured risk pool is deteriorating is the increase in self-funded, and specifically level-funded, arrangements for small businesses. The plans are referred to as level-funded because employers pay a fixed amount each month,” the KFF report said.
KFF also says the growth of self-insured policies for smaller groups has jumped by double digits from 2021 to 2025.
Polling shows the top items voters are concerned about when it comes to affordability is food cost, energy, gas and their healthcare.
