Michigan Insurers Approved 14.2% Rate Hikes for 2027
State regulators greenlit steep price increases for individual and small group plans as marketplace enrollment in Michigan fell 27% this year.
By Giulia Marshall ·
Michigan health insurance rates are jumping again in 2027.
State regulators approved average premium increases of 14.2% for individual plans and 9.6% for small group plans on Wednesday. These rates take effect when open enrollment begins on Nov. 1.
The hikes affect roughly 400,000 people who buy their own coverage and another 400,000 covered by small business plans. Small group plans serve businesses with fewer than 51 employees. The average worker contribution for family coverage reached $7,471 this year, a 9% rise from 2025. The consulting firm Marsh forecasts employer costs will climb between 8% and 11% next year.
Enrollment in the state's Affordable Care Act marketplace has contracted sharply. Coverage dropped by more than 130,000 people over the past year. This 27% decline is more than double the 12% drop seen nationally. Neighboring Ohio lost 32% of its enrollees, and Indiana lost 28%. States that created their own marketplaces or offered distinct subsidies saw smaller declines.
Fewer insurers will offer plans on HealthCare.gov in Michigan next year. Seven companies will remain in the market, matching the current year but falling far short of the 15 providers present in 2016. Meridian Health Plan of Michigan exited the Metro Detroit market this year. The insurer reported 156,012 individual enrollees in its 2026 rate filing and only 18,938 in its 2027 filing. This single exit accounts for a loss larger than the total market decline. Ambetter from Meridian will return to Wayne, Oakland, Macomb, and Monroe counties in 2027 and add Bay County, according to a company spokesperson.
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. A policy brief from the center notes that these changes narrow eligibility, shorten enrollment windows, and add paperwork requirements. Bret Jackson, president of the Economic Alliance of Michigan, said the affordability crisis is accelerating quickly. Leaders from the Small Business Association of Michigan report that healthcare costs are a top priority for their members heading into the next state legislative session.
Plan options have also thinned. Consumers will choose from 143 marketplace plans statewide in 2027, up from 116 this year but down from 231 in 2023. A Bridge Michigan analysis of public comments to the state insurance department found universal opposition to the rate hikes. Seniors, doctors, and brokers cited costs outpacing inflation. One commenter spending $2,500 monthly for family coverage said the increases will force them to drop coverage entirely. Another said they would work less to qualify for Medicaid.
The share of Michiganders without healthcare coverage stands at 5.5%, according to the latest Census data. This figure is below the national rate of 8.4% but is returning to levels not seen since before the pandemic.
