Michigan health insurance premiums rise by an average of 14.2% for 2027

Michigan state regulators approved average premium increases of 14.2% for individual health insurance plans effective November 1. The rate hike applies to approximately 400,000 residents who purchase their own coverage, including those enrolled in the Affordable Care Act marketplace. Regulators also approved a 9.6% average increase for small group plans that cover employees at businesses with fewer than 51 workers.

The approval comes as enrollment in the state's federal marketplace has contracted sharply. Roughly 130,000 fewer people in Michigan are receiving coverage through the ACA marketplace heading into 2027. State data shows a 27% decline in marketplace enrollment over the past year. This drop is more than double the 12% decrease observed across the United States during the same period.

The University of Michigan’s Center for Health and Research Transformation attributes the trend to several factors. These include the expiration of enhanced premium subsidies, federal rule changes, and new provisions tied to President Trump’s One Big Beautiful Bill Act. In a policy brief published this month, the center noted that these changes narrow eligibility, shorten enrollment windows, and add paperwork requirements for tax credits.

Employers are feeling the financial pressure as well. The Small Business Association of Michigan reported that many local companies are struggling with rising healthcare costs. Bret Jackson, president and CEO of the Economic Alliance of Michigan, stated that the affordability crisis is accelerating quickly. He added that the loss of health coverage is a top priority for the incoming governor and state Legislature.

The number of insurers offering ACA coverage in Michigan remains stable at seven companies for 2027, though it has fallen from 15 in 2016. Plan options for consumers have also shifted. There will be 143 marketplace plans available statewide in 2027. This number is up from 116 this year but down from 231 in 2023. Meridian Health Plan of Michigan exited the Metro Detroit market this year, reporting a drop in individual market enrollees from 156,012 in its 2026 filing to 18,938 in its 2027 filing.

Ambetter from Meridian, the company’s marketplace option, plans to return to Wayne, Oakland, Macomb, and Monroe counties in 2027. The company will also add Bay County to its service area, according to a spokesperson. Meanwhile, national surveys by the consulting firm Marsh forecast that employer-sponsored family coverage costs will rise between 8% and 11% next year.

Public comments to the Michigan Department of Insurance and Financial Services showed broad opposition to the new rates. Seniors, doctors, and brokers described premiums as outpacing inflation. One resident who spends $2,500 a month on family coverage said the increases will force the family to drop healthcare coverage completely. Another commenter said the rate hike would push them to stop buying marketplace insurance and work less to qualify for Medicaid.

Uninsurance rates in the state are also climbing. The latest Census data indicates that about 5.5% of Michigan's population goes without healthcare coverage. While this figure is below the national uninsured rate of 8.4%, it represents a return to levels not seen since before the onset of the COVID-19 pandemic. Open enrollment for 2027 plans began on November 1.