Maryland Health Premiums Rise Again
Average ACA costs in the state climbed 14.6 percent for 2027, following a similar spike in the previous year.
By Adewale Fletcher ·
Maryland residents can begin selecting or modifying their Affordable Care Act plans on Monday. The state marketplace, Maryland Health Connection, will remain open for enrollment until January 15, 2027. Individuals who complete their application by December 31 will have coverage effective January 1, while those who apply later will see coverage begin in February.
The 2027 policy year brings a steep financial burden for consumers. Average premiums for ACA plans in Maryland increased by 14.6 percent. This follows a 13.4 percent hike in the previous year. Historically, rate increases in the state have hovered around 8 percent, making the last two years of double-digit growth a sharp deviation from the norm.
Four insurance companies offer plans through the state marketplace: CareFirst, Kaiser Permanente, Wellpoint, and UnitedHealthCare. Marie Grant, the commissioner of the Maryland Insurance Administration, attributed the cost surge to rising hospitalization and pharmaceutical expenses. She also pointed to changes resulting from H.R. 1, the federal spending and tax law enacted by Congress. The 2027 rates exceed the levels initially proposed by insurers in June.
A press release from the Maryland Insurance Administration provides specific data on cost drivers. Hospital costs are trending upward by 7.8 percent, while professional services have risen by 8.6 percent. Prescription drug costs have climbed by 14.8 percent. These figures illustrate the underlying pressure on the insurance market despite state-level interventions.
More than 250,000 Marylanders currently use the ACA marketplace. The state maintains the lowest bronze and gold level premiums in the nation, aided by subsidies for individuals under 40 and those earning below 400 percent of the federal poverty level. Vincent DeMarco, president of Maryland Healthcare for All, expressed disappointment over the higher prices. He criticized decisions by the Trump administration and Congress while praising Governor Wes Moore’s administration for protecting residents through state-specific programs.
Financial strain is already visible in enrollment numbers. Between January and the end of March, approximately 18,000 residents dropped their coverage. This represents an 8 percent disenrollment rate, largely driven by an inability to pay. The state continues to outperform many other regions due to its reinsurance and subsidy structures.
The upcoming year introduces new variables into the market. H.R. 1 includes requirements for Medicaid that will likely remove millions of individuals from federal rolls. These changes will further shape the insurance environment as the state navigates the next open enrollment period.
