Companies offering Affordable Care Act (ACA) marketplace health plans are seeking a median 14% premium increase for 2027, according to an analysis released Wednesday by the Peterson-KFF Health System Tracker. If approved by state regulators, the rate hikes would mark the second-highest annual premium increase since 2018, significantly impacting affordability for millions of Americans.

Rising Medical Costs Push Premiums Higher

According to Peterson-KFF, rising healthcare costs remain the biggest driver of the proposed rate increases. Insurers cited higher spending on medical care, increased demand for specialty medications and GLP-1 weight-loss drugs, as well as broader medical inflation. The analysis also found that insurers expect the pool of enrollees to become older and sicker after the expiration of enhanced federal premium subsidies introduced during the COVID-19 pandemic. As healthier consumers drop coverage, insurers estimate that shift alone will add about 4 percentage points to next year's premium increases.

Some insurers also said recent Trump administration policy changes that tighten enrollment requirements are contributing to higher requested rates. In its New York filing, UnitedHealth Group Inc. said the combination of expiring enhanced subsidies and the new enrollment rules accounted for 12.7% of its proposed rate increase.

Affordability Pressures Continue

The Department of Health and Human Services estimates 19.2 million Americans are currently enrolled in ACA marketplace plans, down about 13% from 22.1 million in 2025 after the enhanced subsidies expired. Without those additional subsidies, average premiums rose 58% in 2026, while deductibles increased by roughly $1,000 per person, making coverage less affordable for many consumers. If the latest filings are approved, ACA premiums will have risen by more than 33% between 2025 and 2027.

Most marketplace enrollees earning less than 400% of the federal poverty level continue to qualify for premium subsidies, helping shield them from much of the increase. Those with incomes above that threshold, however, are likely to bear the full impact of higher premiums.

Marketplace Faces Policy Changes

The proposed rate requests build on earlier warnings that higher healthcare costs would continue to pressure the ACA marketplace. In May, KFF projected marketplace enrollment would decline after enhanced federal subsidies expired, warning that rising premiums would push more consumers to drop coverage while increasing financial pressure on insurers.

The filings also come as the Trump administration tightens oversight of the Affordable Care Act marketplace. Earlier this week, Health and Human Services Secretary Robert F. Kennedy Jr. and Centers for Medicare & Medicaid Services Administrator Dr. Mehmet Oz said more than 1 million HealthCare.gov enrollees do not have a Social Security number on file as part of a broader review of suspected fraud and enrollment verification. Administration officials have also said nearly 2.9 million improper or questionable enrollments have already been removed or blocked.

Insurers, including Centene Corporation and UnitedHealth Group Inc., have also warned investors about elevated medical costs in their Affordable Care Act businesses this year. CVS Health Corporation said last year that its Aetna unit would stop offering Obamacare plans in 2026 because of rising costs.

The White House is pressuring top U.S. grocers to address rising beef prices, aiming to mitigate inflationary pressures on consumers. This initiative underscores growing concerns about food costs and their impact on household budgets.

The engagement with grocery retailers is part of a broader strategy to tackle inflation across key sectors. Beef prices have been a focal point due to their significant contribution to overall food inflation.

Context and Implications

The White House's focus on beef prices reflects the commodity's role in driving food cost increases. Grocers are being urged to explore measures that could stabilize prices without disrupting supply chains.

Key Factors

• Inflation Control: The move aligns with efforts to reduce overall inflation rates.
• Consumer Impact: High beef prices directly affect household spending.
• Industry Response: Grocers may need to adjust pricing strategies or sourcing practices.

The outcome of these discussions could influence future policy measures targeting food inflation.