Health insurance companies are proposing double-digit rate hikes for 2027 Minnesota individual plans ranging from 10 to 13 percent for individuals and as high as 21 percent for small groups, according to the state Department of Commerce.
Providers asking insurers for higher prices, medical inflation and more patients utilizing care are driving the rate increases, policy analyst Matt McGough with KFF Health News told MPR Newsβ Morning Edition show Wednesday.
The expiration of enhanced premium tax credits last year is also still affecting rates for 2027, he added.
Some insurers βare expecting that the price increases this past year will drive some relatively younger and healthier individuals out of the marketplace, which leaves a relatively sicker pool of people that insurers have to cover, which drives premium increases higher than they otherwise would,β he explained.
Rates will officially be set Oct. 1.
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