Health insurers in Minnesota are asking state regulators to approve significant premium increases for coverage plans that take effect in 2027. According to MinneapoliMedia, multiple insurers have filed requests for double-digit percentage rate hikes, which would raise costs for individuals and families purchasing coverage through the state's individual market.
The filings come as insurers across the country continue to cite rising medical costs, increased utilization of health services, and higher prescription drug prices as drivers of premium growth. Minnesota regulators will review the proposed increases before deciding whether to approve them, modify them, or require insurers to submit revised filings.
Premium increases of this size would affect Minnesotans who purchase insurance on their own rather than receiving coverage through an employer. People who qualify for federal subsidies under the Affordable Care Act may be shielded from some of the increases, depending on their income level. Those who earn too much to qualify for subsidies would absorb the full cost of any approved rate hikes.
The requests follow several years of rate volatility in Minnesota and other states. Insurers have pointed to the end of certain pandemic-era policies and shifts in the health of enrolled populations as contributing factors. Mental health services, specialty drugs, and hospital-based care have all seen cost increases that insurers say they must pass on to consumers.
State insurance regulators in Minnesota have the authority to reject rate increases they determine to be unreasonable. Consumer advocacy groups have already begun calling for close scrutiny of the filings, arguing that large premium increases push more people out of the insurance market and strain household budgets.
The final approved rates for 2027 coverage are expected to be announced later this year, ahead of the open enrollment period when residents can select or change their health plans.