Why Your Health Insurance Premium May Be Going Up in 2027

If your health insurance premium seems higher every year, you are not alone. As we approach 2027, many individuals, families, self-employed workers, and business owners may be wondering why their health insurance costs continue to increase — and whether there are better options available.

Health insurance premiums can change from year to year for several reasons. Medical costs, prescription drug prices, changes in the insurance market, household income, and changes to available subsidies can all affect what you pay for coverage.

The important thing to remember is this: you don't necessarily have to accept your current premium as the only option.

Whether you have an ACA Marketplace plan, employer coverage, or another type of health insurance, reviewing your options before your current plan renews can potentially help you find coverage that better fits your needs and budget.

1. Medical Costs Continue to Rise

One of the biggest factors behind health insurance premium increases is the rising cost of healthcare.

Hospitals, doctors, specialists, diagnostic testing, procedures, and prescription medications can all become more expensive over time. Insurance companies take these costs into account when determining premiums for future coverage periods.

When the overall cost of providing healthcare increases, insurers may adjust premiums accordingly.

This means your premium could increase even if your personal health hasn't changed at all.

You could have the same doctors, use the same prescriptions, and have very few medical expenses — yet still see your monthly premium increase when your plan renews.

2. Prescription Drug Costs Can Affect Premiums

Prescription medications are another major factor in healthcare spending.

New medications, specialty drugs, biologic treatments, and increasingly expensive prescriptions can contribute significantly to the overall cost of medical care.

Insurance companies consider the claims and prescription expenses across their covered populations when setting future rates.

As a result, rising medication costs can contribute to higher premiums even for people who don't personally take expensive medications.

3. Your ACA Subsidy Could Change

For people enrolled in an ACA Marketplace plan, the amount you pay each month isn't necessarily determined solely by the insurance company's listed premium.

Financial assistance can reduce the amount an eligible household pays for coverage.

However, changes in household income, family size, eligibility rules, or other circumstances can affect how much assistance you receive.

This is particularly important for self-employed individuals and business owners because income can fluctuate from year to year.

If your income changes significantly, your premium assistance may change as well.

That's one reason it's important to review your information and coverage options each year rather than simply allowing your existing plan to renew automatically.

4. Your Plan May Be Changing

Sometimes the increase isn't simply about the cost of healthcare.

Insurance companies can change the plans they offer, including premiums, deductibles, copays, coinsurance, provider networks, and other benefits.

A plan that worked well for you one year may look very different the next.

For example, you could see:

• A higher monthly premium

• A higher deductible

• Changes to your provider network

• Different prescription coverage

• Higher copays or coinsurance

• Changes to the plan's out-of-pocket maximum

That's why looking only at the monthly premium can be misleading.

A lower premium isn't automatically a better deal, and a higher premium doesn't automatically mean better coverage.

The goal is to understand the overall cost and benefits of the coverage.

5. Your Income May Put You in a Different Position

Self-employed individuals, contractors, freelancers, and business owners often have a different experience with health insurance than traditional W-2 employees.

Your income may change throughout the year, which can affect your eligibility for certain forms of financial assistance.

Someone who had a significant subsidy one year may receive less assistance the following year depending on their circumstances.

On the other hand, someone who didn't qualify for meaningful assistance may want to explore other types of health insurance that aren't structured the same way as Marketplace coverage.

This is one reason self-employed individuals should consider more than one approach when shopping for coverage.

6. You May Have More Options Than You Realize

Many people assume that their only choices are:

Keep the plan they have or choose another Marketplace plan.

That's not necessarily the case.

Depending on your circumstances, you may be able to explore other forms of individual health coverage, including privately offered plans and private PPO options.

Some private health insurance plans are medically underwritten and may have different eligibility requirements, pricing structures, provider networks, and benefits than ACA Marketplace plans.

These plans aren't appropriate for everyone, and eligibility can depend on factors such as age, location, health history, and the specific plan.

However, if you're frustrated with your current coverage or premium, it can be worthwhile to find out what options are available to you.

7. Automatically Renewing May Not Be Your Best Strategy

One of the easiest mistakes to make with health insurance is doing nothing.

Your current plan may automatically renew, which can make it tempting to simply keep paying the new premium.

But your circumstances may have changed.

Maybe your income is different.

Maybe you've moved.

Maybe your doctors have changed.

Maybe you're healthier than you were several years ago.

Maybe your current deductible no longer makes sense for your budget.

Or perhaps you're simply paying more than you feel comfortable paying each month.

A yearly review gives you an opportunity to compare your current coverage against what's available.

How to Prepare for 2027 Health Insurance Costs

If you're concerned that your health insurance premium could increase in 2027, there are several things you can do now.

Review Your Current Coverage

Look beyond the monthly premium.

Review your:

• Deductible

• Maximum out-of-pocket

• Copays

• Coinsurance

• Prescription coverage

• Provider network

• Hospital network

• Covered services

Understanding what you're actually paying for makes it easier to compare alternatives.

Estimate Your 2027 Income

If you receive Marketplace financial assistance, having a reasonable estimate of your household income can be especially important.

Self-employed individuals should pay particular attention because income can change throughout the year.

To see the proposed 2027 increases and carrier exits where you live, check your state guide. If a big increase pushes you toward private coverage, the self-employed guide for your state explains the options, and here is how the 2027 subsidy limits work.

Don't Wait Until the Last Minute

Open Enrollment can be a busy time for consumers, insurance companies, and advisors.

Starting your research earlier gives you more time to understand your options and determine whether your current coverage still makes sense.

You don't have to wait until you're staring at a new premium bill to start thinking about your next plan.

Compare More Than One Type of Coverage

If you're unhappy with your current Marketplace plan, don't automatically assume that switching to another Marketplace plan is your only solution.

Depending on your situation, it may make sense to compare ACA Marketplace coverage with other individual health insurance options.

A licensed insurance professional can help you understand the differences and determine which options you may qualify for.

What If My Health Insurance Premium Goes Up in 2027?

The first step is not to panic — and don't automatically assume you have to accept the increase.

Instead, take the opportunity to review your current coverage and compare it with other options.

For some people, staying with their current plan may still be the best choice.

For others, switching plans could provide a better balance between monthly premiums, deductibles, networks, and benefits.

And for certain individuals, particularly self-employed workers, contractors, business owners, and people who don't qualify for significant Marketplace financial assistance, private health insurance may be worth investigating.

The right choice depends on your individual circumstances.

Looking for Health Insurance Options for 2027?

At Posey Health Solutions, we help individuals, families, self-employed professionals, contractors, and business owners explore their health insurance options.

If you're concerned about rising premiums or you're simply not satisfied with your current coverage, you don't have to wait until your renewal date to start researching alternatives.

We can help you understand what types of coverage may be available and compare options based on your individual needs.

Don't assume your current premium is your only option for 2027.

Start reviewing your health insurance options before you renew.

Contact Posey Health Solutions today to learn more about your available health insurance options.

Frequently Asked Questions

Why does health insurance get more expensive every year?

Health insurance premiums can increase because of rising healthcare costs, prescription drug expenses, changes in utilization, inflation, changes to insurance plans, and other factors affecting the cost of providing healthcare.

Will everyone's health insurance premium increase in 2027?

Not necessarily. Premium changes vary depending on the insurance company, plan, location, age, household circumstances, and type of coverage.

Can my Marketplace subsidy change in 2027?

It can. Marketplace financial assistance can depend on factors such as household income and family size. Changes in your circumstances can affect the amount of assistance for which you qualify.

Can I switch health insurance if my premium increases?

Depending on your circumstances and the type of coverage you have, you may have opportunities to change plans during Open Enrollment or through a qualifying Special Enrollment Period. Other types of coverage may have different enrollment rules.

Is private health insurance an alternative to Marketplace coverage?

For some individuals, private health insurance may be an alternative worth exploring. Eligibility, underwriting, benefits, networks, and costs vary by plan and individual circumstances.

When should I start looking at health insurance for 2027?

It's generally a good idea to start reviewing your options before your current coverage renews. Starting early gives you more time to understand your current plan, estimate your upcoming costs, and compare available alternatives.