How much are health insurance premiums increasing in 2027?

ACA Marketplace plans are seeing proposed increases of about 15% on average for 2027, following a 20% increase in 2026. Employer-sponsored plans are projected to rise 8-10%, and Medicare Part B premiums are expected to jump nearly 12% to $206.50 per month.

Why are health insurance costs going up so fast?

Several factors are driving costs up: rising hospital and doctor prices, expensive new prescription drugs (especially GLP-1 medications like Ozempic and Wegovy which now account for 14% of all drug spending), the expiration of enhanced ACA subsidies, increased behavioral health utilization, and general medical inflation outpacing the economy.

How can I lower my health insurance costs?

Check if you qualify for ACA subsidies (many people who think they do not actually do qualify), compare plans during open enrollment rather than auto-renewing, consider a high-deductible plan paired with an HSA for tax savings, use prescription discount cards like GoodRx for medications, and negotiate any medical bills you receive.

Are employers passing more costs to workers?

Yes. Many employers are shifting costs to employees through higher premium contributions, increased deductibles, and higher copays. KFF reports that employers typically pay 75-85% of plan costs, but the employee share is growing. Review your open enrollment materials carefully rather than just re-enrolling in the same plan.

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Health Insurance Costs Rising in 2027: How Much More Will You Pay?

Updated September 2026 · 10 min read

If you feel like your health insurance gets more expensive every year, you are right — and 2027 is shaping up to be one of the worst years yet. Whether you get coverage through your employer, the ACA Marketplace, or Medicare, premiums are climbing at rates not seen in over a decade. Here is exactly what is happening, why, and what you can do to protect yourself.

Know Your Numbers Before Open Enrollment

Use these free calculators to understand your actual costs before choosing a plan.

Out-of-Pocket Calculator ACA Subsidy Check HSA Tax Savings

The Numbers: How Much Costs Are Rising

ACA Marketplace Plans: +15% for 2027 (on top of +20% in 2026)

According to a KFF analysis of public filings from insurers across all 50 states and Washington, D.C., insurers offering ACA plans are proposing an average premium increase of about 15% for 2027. This comes on top of the roughly 20% increase that already took effect in 2026. For someone earning $80,000 a year who does not qualify for standard ACA subsidies, their bronze plan could cost roughly $80 more per month — adding almost $1,000 to their annual bill.

The good news: if your income qualifies you for premium tax credits, your actual increase may be much smaller because subsidies adjust upward as premiums rise. Use our ACA Subsidy Calculator to check if you qualify — many people who assume they earn too much are surprised to find they are eligible.

Employer Plans: +8.5% for 2026, Similar Expected for 2027

PwC projects group health insurance costs will rise 8.5% in 2026, matching the prior year and reaching levels not seen in 15 years. Employers typically absorb 75-85% of total plan costs, but increasingly they are shifting more to workers through higher premium contributions, larger deductibles, and increased copays.

What this means for you: even if your monthly premium stays similar, your deductible or copays may jump. Check your actual out-of-pocket exposure with our Out-of-Pocket Calculator before open enrollment.

Medicare Part B: +12% to $206.50/month

Traditional Medicare enrollees are also seeing significant increases. Part B premiums are expected to jump nearly 12% to $206.50 per month, according to CMS. The Part D out-of-pocket cap increases from $2,000 to $2,100 in 2026. On the positive side, Medicare-negotiated drug prices for 10 high-cost medications take effect in 2026, saving beneficiaries an estimated $1.5 billion in out-of-pocket costs.

Why Costs Are Climbing So Fast

1. GLP-1 Drugs Are Driving Up Spending for Everyone

National spending on GLP-1 medications (Ozempic, Wegovy, Mounjaro, Zepbound) rose more than 500% between 2018 and 2023, from $13.7 billion to $71.7 billion. These drugs now account for an estimated 14% of all prescription drug spending in 2026. Even if you do not take them, their cost is baked into everyone's premiums.

Compare your prescription costs across insurance, GoodRx, and Cost Plus Drugs with our Prescription Cost Comparison tool.

2. Hospital and Provider Prices Are Up

Hospital costs are rising across the board — from wages to supplies — leading to increased inpatient admissions and higher costs passed through to commercial payers. Doctor visits, surgical procedures, and diagnostic imaging are all more expensive than a year ago.

3. Behavioral Health Spending Is Surging

Inpatient behavioral health claims have risen nearly 80% and outpatient claims are up almost 40%. Actuaries expect a 10-20% increase in behavioral health spending in 2026 alone. This reflects both increased demand and expanded access — a positive development for patients but a cost driver for insurers.

4. ACA Enhanced Subsidies Expired

The enhanced premium tax credits from the American Rescue Plan (extended by the Inflation Reduction Act) expired at the end of 2025. KFF estimates this increased premium payments for Marketplace coverage by an average of 114% — roughly $1,016 more per year. More than 1 million fewer people signed up for ACA plans in 2026 as a result.

What You Can Do Right Now

1. Do Not Auto-Renew Your Plan

The single most expensive mistake you can make during open enrollment is clicking "keep same plan" without comparing alternatives. Plans change every year — what was cheapest last year may not be cheapest this year. Spend 30 minutes comparing options. It could save you hundreds or thousands of dollars.

2. Check Your Subsidy Eligibility

Even if you did not qualify for ACA subsidies before, check again. Income thresholds, plan prices, and your own income may have changed. Our ACA Subsidy Calculator takes 30 seconds.

3. Consider an HDHP + HSA

A high-deductible health plan paired with a Health Savings Account can significantly reduce your total healthcare costs through tax savings. The HSA triple tax advantage — tax-deductible contributions, tax-free growth, and tax-free withdrawals for medical expenses — is the most powerful tax break available to most Americans. See your exact savings with our HSA Calculator.

4. Right-Size Your FSA

If your employer offers a Flexible Spending Account, use it — but do not over-elect. Our FSA Calculator helps you find the sweet spot between tax savings and forfeiture risk.

5. Build Your Medical Emergency Fund

With deductibles rising, having cash set aside for medical emergencies is more important than ever. Our Medical Emergency Fund Calculator sizes your target based on your actual plan.

6. Negotiate Every Medical Bill

As your out-of-pocket exposure grows, so does the importance of knowing how to negotiate medical bills. Hospitals routinely accept 20-50% less than the billed amount. Our Medical Debt Payoff Calculator models negotiation scenarios.

Free Tools to Prepare for Open Enrollment

Out-of-Pocket Calculator — see what you would actually pay under any plan
ACA Subsidy Calculator — check your premium tax credit
HSA Tax Savings Calculator — see your triple tax advantage
FSA Savings Calculator — find the right election amount
COBRA vs ACA Calculator — compare options after job loss
Prescription Cost Comparison — find the cheapest way to fill medications
Emergency Fund Calculator — size your medical safety net
Medical Debt Payoff Calculator — plan your payoff with negotiation discounts

Sources: NBC News, KFF, PwC Health Research Institute, CMS, American Spectator, MoneyGeek. Data reflects reporting through September 2026. This article is for educational purposes only and does not constitute insurance, financial, or medical advice.