Maryland's 2027 Insurance Rates Jump 14.6% as Federal Subsidies Expire

Maryland residents purchasing individual health coverage face higher premiums in 2027 after state regulators approved an average 14.6% increase for unsubsidized plans. Open enrollment for the new year began on Sunday, November 1, 2026, via Maryland Health Connection. The change impacts the roughly 274,000 Marylanders who buy their own insurance outside of employer-sponsored group plans.

The price of the lowest-cost silver plan for a 40-year-old in the Baltimore metro area now varies widely by insurer. Rates for that specific plan increased anywhere from 2.6% to 19.2%. In dollar terms, the monthly cost difference between the cheapest and most expensive options ranges from approximately $9 to $89. This disparity means that a plan that was the most affordable in 2026 may no longer be the best value in 2027.

Small employers buying group coverage also face higher costs, with an average premium increase of 10.2%. This figure is lower than the 13.1% increase insurers had requested. Stand-alone dental plans for individuals will see an average rise of 3%. These increases follow the expiration of enhanced federal premium tax credits that Congress did not renew.

Regulators cited three main factors driving the rate hikes: the loss of federal subsidies, eligibility changes under H.R. 1, and rising medical costs. In the small group market, hospital care costs rose by 7.8%, professional services increased by 8.6%, and prescription drug costs jumped 14.8%. Marie Grant, the Maryland Insurance Commissioner, stated that while the state cannot control federal decisions, it can control its response to them.

Maryland operates a state-run reinsurance program under a federal waiver that lasts through 2028. This program helps keep individual rates 30% to 35% lower than they would otherwise be. Without this mechanism, the impact of the recent federal changes on Maryland premiums would have been even more severe.

Not every buyer will see a 14.6% hike. About 70% of people who purchase coverage through Maryland Health Connection receive a premium subsidy. These enrollees may experience a smaller increase, or a different change entirely, based on their income and plan selection. The state’s Premium Assistance Program replaces some of the expired federal help for households earning up to 400% of the federal poverty level.

For households earning up to 200% of the poverty level, the state covers the full loss of the enhanced federal subsidy. Those earning between 200% and 400% receive half of that lost amount. The Maryland Health Benefit Exchange board voted to maintain this structure for 2027. Additionally, enrollees aged 18 to 37 may qualify for an extra state-funded subsidy, a program made permanent by 2025 legislation.

Consumers have until December 31, 2026, to enroll for coverage starting January 1, 2027. The final day of open enrollment is January 15, 2027, with coverage beginning February 1 for those who enroll in the final window. Medicaid and Maryland Children’s Health Program participants can enroll year-round.

Maryland Health Connection offers free help through its consumer support center at 1-855-642-8572. The line is open Monday through Friday from 8 a.m. to 6 p.m. and will extend hours on December 30, 31, and January 14, 15. Callers should have recent pay stubs, Social Security numbers for household members, and a list of current doctors and prescriptions ready to compare plan networks and drug lists.