Affordable Care Act Rates To Rise Steeply-Again — WSJ

What happened

Affordable Care Act plan premiums will rise 13% in 2027, the second straight year of double-digit increases in a strained market with shrinking enrollment. This follows a 26% surge this year and is the second biggest rise since 2018, per KFF, based on federal data released Friday.

Confirmed

Global impact / market context

Higher premiums raise costs for people who pay full price and pressure employers already passing steep 2027 insurance increases to workers through bigger paycheck withdrawals and out-of-pocket costs. That can pull healthier customers out of the market, leaving a sicker, costlier pool and reinforcing further premium increases.

Analyst inference

Reduced federal subsidies have already led millions to drop ACA coverage, so insurers like Cigna face enrollment losses alongside rising medical costs. Insurers must balance higher prices against shrinking membership, while employers absorb insurance increases that can squeeze budgets and worker pay.

Analyst inference

What to watch

1. The average monthly premium for a 40-year-old buying an ACA benchmark plan is about $704 for 2027, compared with $624 this year and around $497 in 2025. Confirmed
2. Watch whether lawmakers extend or restore federal subsidies, which currently reduce costs for most ACA consumers; reduced support this year already pushed millions to drop coverage. Proposed
3. Track insurer enrollment and claims trends as steeper premiums may push healthier customers out, raising costs for remaining members and possibly prompting insurers to reprice or exit regions. Analyst inference

Evidence

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