MINNEAPOLIMEDIA NEWS | Minnesota Health Insurers Seek Double-Digit Premium Increases for 2027 Coverage

ST. PAUL, MN (June 23, 2026)  Thousands of Minnesotans who purchase their own health insurance could face another year of rising costs after several insurers requested double-digit premium increases for plans that will be sold through Minnesota's individual health insurance market in 2027.

New rate filings submitted to the Minnesota Department of Commerce show proposed premium increases generally ranging between 10 and 13 percent, depending on the insurer and plan. State regulators have begun reviewing the requests, and final approved rates are expected to be announced later this year before the annual open enrollment period begins.

The proposed increases affect coverage purchased through MNsure, Minnesota's health insurance marketplace established under the Affordable Care Act. The marketplace serves individuals, families, self-employed workers, farmers, and small business owners who do not receive health insurance through an employer or government program.

Insurance companies say the proposed rate increases are being driven by continuing growth in health care spending across the state and nation. Among the most frequently cited factors are higher hospital and physician costs, rising prescription drug expenditures, increased utilization of medical services, and growing demand for behavioral health care and specialty treatments. Similar cost pressures have been reported by insurers across the country in recent years.

The filings represent the opening stage of Minnesota's annual rate review process. Under state law, insurers must submit actuarial data and financial projections to justify proposed premiums. The Department of Commerce then evaluates whether the requested rates are reasonable and supported by projected claims costs before approving, modifying, or rejecting them. Final approved rates often differ from the initial requests.

The latest proposals come after Minnesotans experienced significant increases in recent years. For 2026 coverage, insurers initially sought increases ranging from roughly 7 percent to more than 26 percent in the individual market, citing rising medical costs and uncertainty surrounding federal health insurance policies. Final approved rates for 2026 varied by insurer, with some plans ultimately receiving increases well above 20 percent.

Health policy experts note that health insurance premiums are influenced by a complex combination of factors. In addition to medical inflation and pharmaceutical costs, insurers must account for expected enrollment levels, demographic trends, chronic disease prevalence, advances in medical treatment, and federal regulations governing health coverage. Nationally, insurers have reported growing expenses associated with prescription medications, emergency care, specialty drugs, and behavioral health services.

For consumers, however, the impact of the proposed increases will vary widely. The actual premium change experienced by an individual enrollee depends on numerous factors, including age, geographic location, selected plan, household income, tobacco use, and eligibility for federal financial assistance. Many Minnesotans purchasing coverage through MNsure qualify for premium tax credits that help offset monthly insurance costs.

State officials have emphasized that the rates currently under review are preliminary and should not be viewed as final. The Department of Commerce will continue examining insurer assumptions, claims projections, and financial data throughout the summer and fall before issuing final determinations.

The review process is expected to draw significant attention as families continue to face broader inflationary pressures affecting household budgets. Health insurance remains one of the largest recurring expenses for many self-employed workers, retirees not yet eligible for Medicare, and individuals who purchase coverage independently.

Final 2027 health insurance rates are expected to be released later this year, giving consumers their first clear picture of what coverage through Minnesota's individual market will cost during the upcoming enrollment cycle.

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