ACA Individual Market Rates

The Affordable Care Act (ACA) individual market offers health insurance plans that individual consumers can buy through the federal or state Marketplaces or from off-exchange carriers. Each year, insurers submit proposed premium changes to state regulators based on projected healthcare, prescription drug, and administrative costs. These rate filings give individuals, employers, and brokers an early look at what health coverage may cost the following plan year.

Remodel Health is tracking 2027 rate filings across the United States, including proposed rate changes, participating insurance carriers, and on- and off-exchange coverage trends. Because these filings are preliminary, rates are ongoing and subject to change. We will update this page as new filings and final 2027 rates become available.

How are individual market rates trending for 2027?

Early rate filings indicate that ACA individual market premiums will increase again in 2027. KFF is reporting a 15% median proposed premium increase for 2027 across all 50 states and Washington, D.C., with publicly available rate filings¹. This follows a proposed 18% median increase and a finalized 20% median increase in 2026.²

Several factors are contributing to the proposed rate increases, including:

Higher medical and prescription drug costs

Rising prices for hospital care, physician services, and prescription drugs remain the primary driver of premium increases. The average projected trend for medical care in 2027 is about 10%, higher than the 8% annual medical trend in recent years².

Specialty and GLP-1 drug costs

Specialty medications and increased consumer usage of GLP-1 drugs are expensive additions to insurers' claims costs. Some insurers have limited coverage for GLP-1 medications used for weight loss to keep costs low, but others continue to see increasing utilization for diabetes and other health conditions.

The expiration of enhanced premium tax credits

The enhanced ACA tax credits expired at the end of 2025. As a result, consumers' premium costs have increased, contributing to lower Marketplace enrollment in 2026 and healthier individuals declining coverage.

Changes in the individual market risk pool

If enrollment continues to decline, insurers may have a smaller, less healthy pool of members to spread medical expenses across. This creates adverse selection, which can lead to higher individual premiums.

Inflation, labor, and provider costs

General economic inflation, higher healthcare labor costs, and an increasingly older, unhealthy population are common reasons health insurers cite for proposed premium estimates. Higher provider reimbursement rates and health provider consolidation are also contributing to higher underlying costs.

Note: Remodel Health compiled the data in this chart from preliminary 2027 individual market rate filings. Figures reflect proposed rate changes across plans, rating areas, carriers, and on- and off-exchange coverage. These filings reflect insurers’ requested rates rather than final consumer premiums; state regulators may modify them before setting the official 2027 rates.

Off-exchange markets

The chart below details current plan costs, proposed premium rate increases, and insurance carriers for the off-exchange market in 2027.

On- and off-exchange markets

The chart below examines participating insurers, available plans, and the preliminary rate changes for the combined on- and off-exchange markets in 2027. The data includes plans offered on both exchanges, as well as policies offered exclusively on one exchange but not the other.

What higher rates may mean for employers offering an ICHRA in 2027

Higher individual market premiums can affect how employers design their individual coverage health reimbursement arrangement (ICHRA) contribution strategy for 2027. Most employees use their ICHRA contributions to pay for some or all of their individual health insurance premiums. If health insurance plans cost more in 2027, as preliminary figures suggest, employers must review their current contribution levels and employee class structures to ensure their ICHRA covers enough of employees’ monthly premiums and provides enough value.

Employers preparing for 2027 should:

Compare current allowances with projected 2027 premiums in the states and rating areas where employees live. Higher premiums may require you to adjust your contributions so that your employees and their families receive adequate financial support. Remodel Health can help you choose a budget-friendly yet competitive contribution strategy so your ICHRA meets all your employees’ needs.

Applicable large employers (ALEs) subject to the ACA employer mandate should review proposed 2027 rates and their contribution amounts to ensure their ICHRA meets federal affordability standards.

National rate averages don’t mean all your employees in the same location will have the same pricing. Rate increases vary by state, carrier, rating area, ZIP code, and plan type. A market with higher average increases can still offer affordable health insurance coverage, while a market with a lower statewide average may have fewer cost-effective options.

Recommend that your employees compare premiums, provider networks, prescription drug coverage, cost-sharing, and other plan features early and often as 2027 options become available. At Remodel Health, we provide employee education and enrollment support to help them choose the right health insurance plan and make the most of their ICHRA benefit.

2027 rate filings offer an early look at what employers and employees may encounter during Open Enrollment Period. But while national premium trends are useful general information, they don't show what employees will actually pay. As Open Enrollment approaches, employers should monitor finalized premiums in the markets where their employees live, reexamine their ICHRA contributions, and remind employees to review their 2027 coverage.

If you offer an ICHRA through Remodel Health, we can help you design a personalized benefit strategy, understand local market options, and prepare employees for Open Enrollment. Schedule a call with us today to get your ICHRA benefit ready for 2027.

Note: This page was last updated on August 26, 2026. Individual market rate filings are ongoing, and proposed rates can change as state regulators review and approve final numbers. Remodel Health will continue updating this page as states finalize their 2027 rates.