Key Takeaways
- Rates rise: Individual plans could increase up to 21.1%.
- Small groups: Rates could climb up to 21.4%.
- Enrollment: Open enrollment starts Nov. 1, 2026.
Minnesota insurers are seeking rate increases of up to 21.4% for individual and small-group plans in 2027, as regulators review proposed premiums affecting hundreds of thousands of residents.
Proposed Rates Could Raise Premium Costs
The Minnesota Department of Commerce said proposed individual-market rate increases range from 9.9% to 21.1%, affecting about 203,000 Minnesotans who purchase their own health coverage.
Small businesses could also face higher costs. Proposed increases in the small-group market range from 10.6% to 21.4% and would cover about 184,000 people, according to the department.
The proposed rates reflect average changes submitted by insurers and do not necessarily reflect what every consumer will pay. Premiums can vary based on factors including age, geographic rating area, plan selection, and renewal date.
Regulators Review Insurers’ Filings
Minnesota Insurers submit their proposed rates and supporting information to state regulators each year. The Commerce Department and Minnesota Department of Health review the filings before plans can be sold to consumers.
The departments examine whether proposed rates are justified by expected medical claims and the benefits provided by the plans. Regulators can require insurers to modify rates if they determine that the proposals do not meet applicable requirements.
The state said rising medical-care and prescription-drug costs are among the factors that typically contribute to annual premium increases.
Minnesota’s individual and small-group markets include plans offered through the state’s health insurance marketplace. Open enrollment is scheduled to begin Nov. 1, with a Dec. 15 deadline for coverage beginning Jan. 1, 2027.
Reinsurance Program Helps Limit Increases
Minnesota’s Premium Security Plan, a state reinsurance program established in 2017, is designed to stabilize the individual insurance market by helping insurers manage the cost of high-cost claims.
According to the Department of Commerce, the program has helped limit premium increases. The department said the average proposed 2027 rate change would have been 57.9% without the reinsurance program, compared with an average proposed increase of 17.4% with the program.
The program is also undergoing a funding change for 2027. State general-fund support for part of the program expires at the end of the 2026 plan year, while health insurers will be assessed to cover that portion in 2027.
Consumers should not assume that the proposed percentage will equal their personal premium increase. The Commerce Department said actual costs depend on the specific plan, location, and individual circumstances.
The department also noted that proposed rates remain subject to regulatory review and approval.
