Health Insurance Costs Skyrocket for 2027, Millions Face Steep Premium Hikes

Millions of Americans face substantial monthly health insurance bill increases heading into 2027, with premium hikes reaching some of the highest levels in decades. The sweeping financial pressure spans across Affordable Care Act marketplaces, employer-provided health plans, and Medicare beneficiaries alike. Surging hospital care expenses, rising doctor visit fees, and increased utilization of high-cost prescription drugs are fueling the nationwide cost spike.

Individuals purchasing coverage through the Affordable Care Act marketplace are bracing for a second straight year of double-digit rate hikes, with insurers proposing average premium increases of about 15 percent for 2027. This follows an average 20 percent jump in 2026, compounded heavily by the expiration of enhanced federal pandemic-era subsidies that previously lowered out-of-pocket costs for middle-class enrollees.

"Healthcare costs are going up faster than they have in years, and open enrollment is when the healthcare affordability crisis is really going to hit home for people," said Larry Levitt, executive vice president for health policy at KFF.

Workers with job-based insurance will also feel the crunch as employers expect benefit costs to climb 8.2 percent on average in 2027, marking the largest increase since 2003 according to a Marsh survey. Rather than absorbing the blow entirely, roughly two-thirds of large employers plan to shift portions of these expenses directly onto employees by raising monthly premiums or increasing deductibles.

Meanwhile, roughly 70 million Medicare enrollees face adjustments to outpatient and prescription drug costs. The Centers for Medicare & Medicaid Services projected that baseline monthly Part D costs will rise to $41.33 following the withdrawal of a temporary federal program that previously kept premium spikes in check.