Unsubsidized individual health insurance rates in Maryland will rise by an average of 14.6 percent in 2027. Small group insurance rates will increase by an average of 10.2 percent.
What’s Happening: The Maryland Insurance Administration linked the higher individual rates to expired federal tax credits, federal eligibility changes and rising hospital and prescription drug costs. Each member’s actual cost will depend on the insurer, plan, age and available financial aid.
What’s Important: About 274,000 Maryland residents are covered through the individual market, down from 294,000 last year. Subsidies go to about 70 percent of Maryland Health Connection users and 55 percent of all individual market members.
How This Affects Real People: A 40-year-old in the Baltimore region buying one of the listed lowest-cost, unsubsidized silver plans outside the state exchange would pay an additional $9 to $89 a month. The approved monthly prices range from $350 for an Optimum Choice plan to $674 for a CareFirst plan.
Financial Help: Eligible residents with household incomes below 400 percent of the federal poverty level can receive state premium aid through Maryland Health Connection. The federal poverty level is an income measure used to decide who qualifies for aid. Because assistance depends on several factors, subsidized members may not face the full approved increase.
Small Group Plans: Small group insurance covers employers with 50 or fewer full-time workers. Insurers requested an average increase of 13.1 percent, but the state approved 10.2 percent.
Enrollment in the small group market fell from about 203,000 residents last year to 199,000. Among the listed lowest-cost silver plans, monthly increases for a 40-year-old in the Baltimore region range from $20 to $68.
By the Numbers: Hospital costs are increasing by 7.8 percent, professional service costs by 8.6 percent and prescription drug costs by 14.8 percent. More than 265 small group plans are available in Maryland.
Dental Coverage: Rates for individual stand-alone dental plans will rise by an average of 3 percent. Insurers initially requested 6.5 percent. About 103,000 residents buy the plans.
The Process: Maryland’s state-backed reinsurance program covers part of some high-cost insurance claims. The program keeps individual market rates 30 percent to 35 percent below what they would otherwise be and has federal approval through 2028.
A public virtual meeting for small businesses will be held Thursday to discuss the small group insurance market.