Health insurance rates could increase 21%+ for Minnesotans in 2027
Medicare official urges Minnesotans to prepare for health insurance premium hikes
Kelli Jo Greiner, product manager with Medicare, breaks down the upcoming hike in health insurance premiums and urges Minnesotans to be proactive in finding the plans that will benefit them most.
(FOX 9) - Minnesotans who buy their own health insurance or are covered through a small business could see significant rate increases in 2027.
Proposed health insurance rate increases
What we know:
The Department of Commerce (DOC) has announced the proposed 2027 health insurance rates for two key markets for Minnesotans seeking coverage.
In the individual market, average increases range from 9.9% to 21.1%, affecting approximately 203,000 Minnesotans.
In the small-group market, commonly offered by small businesses to employers, average increases range from 10.6% to 21.4%, covering approximately 184,000 Minnesotans.
Dig deeper:
Insurers submit proposed rates and supporting data to the DOC annually for regulatory review.
The department then examines those filings to determine if the proposed rates are backed by evidence, and that health plans meet state and federal consumer protection requirements.
Big picture view:
Minnesota's Premium Security Plan, a state-run reinsurance program established in 2017, plays a role in keeping costs lower. The program is designed to stabilize high health insurance premiums in the individual market and increase affordability.
According to the DOC, the average final rate change for 2027 is 17.4%, but without the reinsurance program, the average final rate change proposed by health insurers would have been 57.9%.
Final rates do not reflect what consumers will actually pay. Actual premiums will vary based on factors including plan selection, geographic rating area, age, renewal date and eligibility for subsidies.
What they're saying:
Unsurprisingly, following the announcement, politicians from both sides of the aisle have released statements pitting the blame for increases on the other party.
"With Minnesotans facing rising premiums, Lisa Demuth's support for the Trump health care cuts should concern every Minnesotan," said Minnesota DFL Party Chair Richard Carlbom in a statement. "Anyone who says they are 'really grateful' for these cuts and thinks they are 'good for Minnesota' is completely out of touch. It is inexcusable that Lisa Demuth still has no health care plan – only a long record of supporting the Trump health care cuts that are increasing Minnesotans' costs."
"Minnesotans are not imagining these bills. Democrats spent years raiding the Health Care Access Fund and piling new taxes on care, even voted to eliminate the successful reinsurance program, then act surprised when premiums skyrocketed," said Senate Republican Leader Mark Johnson in a statement. "The Affordable Care Act never delivered the affordability it promised, and Minnesota Democrats have made a bad federal law more expensive. You cannot tax care, spend the dedicated funding, oppose a successful strategy to lower costs, and then blame the bill on everyone else."
What's next:
Open enrollment for health insurance plans begins on Nov. 1, 2026.
Once 2027 plans are finalized on Oct. 15, consumers can visit MNsure.org to find a plan that fits their family and budget.
The deadline to enroll for coverage starting Jan. 1, 2027, is Dec. 15, 2026.
The Source: Information provided by the Minnesota Department of Commerce and previous FOX 9 reporting.