Maryland Insurers Ask for ACA Rate Increases Averaging 13.7% for Individual Plans and 13.1% for Small Groups in 2027, Citing the Loss of Enhanced Federal Tax Credits

Maryland's health insurers have asked for premium increases of more than 13% on average for 2027, and the state's insurance regulator has tied the individual-market requests to the loss of enhanced federal tax credits. The Maryland Insurance Administration published the requests on June 26, 2026. The figures below come from that press release. The release describes proposals, not final rates, and it says final decisions were expected in September. A headline from Maryland Matters dated September 25, 2026 says that state officials approved a 14.6% rate increase for individual premiums on the ACA marketplace, but the article could not be opened, so this summary does not rely on it for any figure. Readers should check the Administration's final announcement for approved rates.

The headline requests

For the individual market, excluding Medigap, carriers requested an overall average increase of 13.7%, with carrier averages ranging from 12% to 14.6%. For the small group market, which covers employers with 50 or fewer full-time equivalent employees, the overall average request was 13.1%, with carrier averages ranging from 4.1% to 20.7%. For stand-alone individual dental plans the average request was 6%, with carrier averages from 0% to 19.8%. The filings cover about 482,000 Marylanders, equal to 19% of the commercial health insurance market.

The individual market by carrier

Enrollment is as of April 30, 2026. CareFirst BlueChoice, an HMO with 126,783 members, requested 14.3%. CareFirst GHMSI, a PPO with 9,552 members, requested 14.6%, and CareFirst CFMI, a PPO with 13,915 members, also requested 14.6%. Kaiser, with 45,998 members, requested 12.0%. Optimum Choice, part of UnitedHealthcare, with 83,350 members, requested 13.5%. Wellpoint Maryland, with 3,182 members, requested 12.8%.

The release gives illustrative monthly premiums for a 40-year-old in the Baltimore metro area on the lowest-cost silver plan before subsidies. CareFirst BlueChoice would go from $371 to $435, CareFirst GHMSI and CFMI from $585 to $667, Kaiser from $344 to $377, Optimum Choice from $342 to $372, and Wellpoint from $437 to $492. The release adds that almost 70% of applicants on Maryland Health Connection receive subsidies, so they will not pay these full premiums. Subsidies depend on household income and are tied to the second-lowest-cost silver plan.

The small group market

Small group requests varied more widely. CareFirst BlueChoice, with 144,739 members, requested 13.8%, while its GHMSI and CFMI PPOs requested 4.1%. The UnitedHealthcare entities requested between 19.6% and 20.7%, and Kaiser requested 7%. Carriers may request changes quarterly in this market. The release also reports mid-year 2026 adjustments: the Administration approved changes for CareFirst and UnitedHealthcare because of higher-than-expected inpatient hospitalizations and surgeries, with approved averages 2.1% lower than CareFirst requested and 6.4% lower than UnitedHealthcare requested.

Why rates are rising

For the individual market, Commissioner Marie Grant said the significant rate increases filed for the second year in a row reflect the loss of federal credits, which Congress and the administration did not extend last year. The release also cites federal pressures from changing exchange rules. For small groups, the release cites increased utilisation of health care services across both medical and drug categories, a trend it says is happening nationally and in Maryland. It also notes that some small employers are turning to level-funded plans, which may appear cheaper but are partly self-insured and lack many Maryland protections for fully insured plans.

State support

For 2026, Maryland created a state subsidy through Maryland Health Connection for enrollees under 400% of the federal poverty level. It fully replaced the enhanced federal subsidies below 200% of the poverty level and replaced half of them from 250% to 400%. The subsidy is expected to continue in 2027, with the amount still to be determined, and the Health Services Cost Review Commission is reviewing a recommendation for additional market-stability funding. The release credits a federal section 1332 State Innovation Waiver, approved through 2028, with helping to keep Maryland's individual rates low.

How the review works

Public hearings on small group requests were held in April and May 2026. A virtual hearing on all proposed 2027 ACA rates was held on July 23, written testimony was due by July 17, and public comments were accepted through August 28. The Commissioner must approve rates before use and must disapprove or modify rates that are unfairly discriminatory or excessive or inadequate in relation to benefits. The Administration said its actuaries would examine the assumptions behind the requests.

Reading the numbers

The averages hide differences. Individual requests are tightly grouped between 12% and 14.6%, while small group requests range more than fivefold, from 4.1% to 20.7%. The release does not explain why the UnitedHealthcare small group requests are so much higher than CareFirst's PPO requests. For households with subsidies, the effect on what they pay depends on the benchmark plan and their income, and not on the headline percentage.

Limits

This article is based on a regulator's press release about proposed rates. Approved rates may differ. It is general information, not insurance advice.