Michigan Insurance Rates: 2027 Increases Approved

Michigan regulators approved major rate increases for health insurance plans effective in 2027.

The state Department of Insurance and Financial Services announced the figures on Wednesday. These hikes take effect when open enrollment begins on November 1.

The individual market has faced a sharp decline in recent years. Enrollment dropped by more than 130,000 people in the last twelve months. This represents a 27 percent decrease, which is more than double the 12 percent national drop. Neighboring states saw similar trends, with Ohio losing 32 percent of its enrollees and Indiana dropping 28 percent.

Several factors contributed to this shift. The University of Michigan's Center for Health and Research Transformation notes that the expiration of enhanced premium subsidies played a role. Federal rule changes and provisions from the One Big Beautiful Bill Act also narrowed eligibility and added paperwork requirements. The center stated in a policy brief that these moves collectively raise costs for those who remain covered.

Employers are also feeling the strain. The Small Business Association of Michigan reported that many companies list healthcare costs as their top priority for the incoming governor and state Legislature. Bret Jackson, president and CEO of the Economic Alliance of Michigan, said the affordability crisis is real and that the loss of coverage is accelerating quickly. National data from KFF shows that the average worker contributed $7,471 for family coverage this year, a 9 percent increase from 2025.

The insurance market landscape is changing as well. Only seven companies will offer ACA coverage in Michigan next year, down from 15 in 2016. Meridian Health Plan of Michigan exited the Metro Detroit market, reducing its individual market enrollees from 156,012 in 2026 to 18,938 in 2027. However, Ambetter from Meridian plans to return to Wayne, Oakland, Macomb, and Monroe counties in 2027, with the addition of Bay County.

Public reaction to the rate hikes has been largely negative. A Bridge Michigan analysis of comments filed with state regulators found universal opposition. Residents described being priced out of affordability. One commenter, who spends $2,500 a month on family coverage, said the increase will force them to drop coverage completely. Another said they would work less to qualify for Medicaid. The state currently has an uninsured rate of 5.5 percent, a level not seen since before the pandemic.