Health care prices are on the rise and only going to get worse as many Americans start shopping for 2027 health coverage.
Here's what to know
According to NBC News, health insurance is expected to cost more for most Americans in 2027, with some of the steepest increases seen in years. Higher prices for medical care and prescription drugs are driving the increase.
The expiration of enhanced federal subsidies, which helped many middle-class consumers keep premiums down, is a major reason Affordable Care Act marketplace shoppers are facing another jump in costs.
A Kaiser Family Foundation review of insurer filings in all 50 states and Washington, D.C., found proposed average premium hikes of about 15% for 2027, after an average 20% increase in 2026.
Employers are also facing a sharp rise in what they spend on health benefits, even if workers do not immediately see the full price tag. In a survey of more than 1,800 employers, benefits consulting group Marsh said the cost of providing health benefits per worker is expected to rise 8.2% on average in 2027. That's the largest price jump since 2003.
People on Medicare could also pay more, especially for prescription drug coverage. The Centers for Medicare & Medicaid Services projected that the standard monthly Part D premium will rise by roughly 6%, but actual costs vary depending on income and plan selection.
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More background
As insurance costs rise, some people delay doctor appointments or skip medications. They may choose plans that offer less protection when they need serious care. The cost increase may be especially difficult for many Medicare beneficiaries, who often live on fixed incomes.
ACA marketplace pricing is also being shaped by who remains enrolled after the enhanced federal subsidies ended in 2025. Miranda Yaver, an assistant professor of health policy and management at the University of Pittsburgh, told NBC News that young adults made up a large share of the enrollment drop.
Prescription drug spending is another major factor. High-cost GLP-1 weight loss medications have raised expenses for insurers and employers, adding pressure on premiums and out-of-pocket costs.
NBC News reported that a $500 rebate check the White House said would go to about 1 million ACA enrollees is unlikely to provide much relief. Yaver said the payment "pales in comparison to the increased premiums that marketplace enrollees are facing due to the expiration of the enhanced subsidies."
What can be done?
Open enrollment may deserve more attention than usual because employers can shift healthcare costs in several ways. Dr. Kevin Schulman of Stanford's School of Medicine told NBC News that companies can do that by raising deductibles or changing which types of care receive more generous coverage.
Monthly premiums are only part of the equation. Deductibles, copays, provider networks, and prescription drug benefits can make a plan that looks cheaper on each paycheck much more expensive once care is actually needed.
People whose income has changed may want to recheck whether they qualify for subsidies. Some Medicare enrollees have multiple premiums to consider — one for doctor's visits and other outpatient care and one for prescription drugs. In 2027, Medicare drug plans will still include a $2,400 annual out-of-pocket cap, offering at least some protection even as premiums rise.
KFF Executive Vice President for Health Policy Larry Levitt said, "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. That's true for whatever kind of insurance you have."
Where can I learn more?
People may face other pricier insurance plans in 2027 based on, among other things, destruction from extreme weather events.
• Across the U.S., rising home insurance premiums are squeezing families hit by extreme weather.
• For major insurers, skyrocketing costs for insurance companies could spill over into consumer bills.
• MIT researchers found a growing number of Americans are carrying troubling energy burdens.
• Homeowners facing soaring insurance costs amid shifting coverage are scrambling just to stay protected.
• In Oklahoma, residents are paying 194% more for home insurance than average.
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