Michigan insurers approved 14.2% rate hikes for 2027 individual plans

Michigan state regulators approved average rate increases of 14.2% for individual health insurance plans and 9.6% for small group plans effective Nov. 1, 2027.

The decisions affect approximately 400,000 individuals purchasing their own coverage and another 400,000 employees working for firms with fewer than 51 staff.

These approvals come as the state’s participation in the Affordable Care Act marketplace shrinks sharply, with enrollment dropping by more than 130,000 people over the past year.

The 27% decline in Michigan’s marketplace enrollment is more than double the 12% drop observed across the United States during the same period.

Neighboring states experienced similar pressures, with Ohio reporting a 32% loss and Indiana seeing a 28% decrease, while states that operated their own marketplaces or provided additional subsidies avoided such steep losses.

The University of Michigan’s Center for Health and Research Transformation attributes the trend to the expiration of enhanced premium subsidies, federal rule changes, and new provisions in the One Big Beautiful Bill Act.

The center noted that these factors collectively narrow eligibility, shorten enrollment windows, and add paperwork requirements for tax credits, thereby raising costs for remaining enrollees.

Local business leaders describe the rising premiums as a primary concern for the incoming governor and state Legislature.

Bret Jackson, president and CEO of the Economic Alliance of Michigan, stated that the affordability crisis is real and that the loss of health coverage is accelerating quickly.

Small Business Association of Michigan leaders reported that many employers are being crushed by healthcare costs, with the issue topping their priority lists for state government.

Insurer participation in the state’s marketplace has also contracted, with seven companies offering ACA coverage in Michigan next year, down from 15 in 2016.

Meridian Health Plan of Michigan made the largest single move in the market, exiting Metro Detroit this year after reporting 156,012 individual market enrollees in its 2026 rate filing and only 18,938 in its 2027 filing, a loss larger than the total market decline itself. Ambetter from Meridian plans to return to Wayne, Oakland, Macomb, and Monroe counties in 2027 and add Bay County, according to a company spokesperson. The state will offer 143 marketplace plans in 2027, up from 116 this year but down from 231 in 2023. KFF data shows the average worker contributed $7,471 toward family coverage this year, a 9% increase from 2025, with Marsh forecasting another 8% to 11% rise next year. Census data indicates 5.5% of Michigan’s population is uninsured, a level returning to pre-pandemic highs despite remaining below the national rate of 8.4%.