14.2%: Average Premium Hike Approved for Michigan's Individual Health Plans

Michigan state regulators approved an average 14.2% increase in premiums for individual health insurance plans effective November 1, 2026. The approval covers policies sold through the Affordable Care Act marketplace and the individual market, affecting approximately 400,000 residents. Separately, regulators approved a 9.6% average rate increase for small group plans, which provide coverage for employees at businesses with fewer than 51 workers.

The rate hikes arrive as enrollment in the state's federal marketplace declines sharply. Roughly 130,000 fewer people in Michigan are enrolled in ACA marketplace plans for the 2027 coverage year compared to the previous period. This represents a 27% drop in enrollment, a figure that exceeds the national decline of 12%. Neighboring states experienced similar pressures, with Indiana reporting a 28% decrease and Ohio seeing a 32% loss in enrollment.

The University of Michigan’s Center for Health and Research Transformation, or CHRT, attributes the trend to the expiration of enhanced premium subsidies, federal rule changes, and provisions in the One Big Beautiful Bill Act. A policy brief published by the center this month noted that these factors narrow eligibility, shorten enrollment windows, and increase administrative burdens. The center stated that these changes collectively raise costs for those who remain enrolled.

The number of insurers offering coverage in the state has also contracted. Seven companies will provide ACA coverage in Michigan next year, matching the current count but down from 15 insurers in 2016. While the total number of marketplace plans statewide will rise to 143 in 2027, up from 116 this year, the choice remains down from 231 options available in 2023. Meridian Health Plan of Michigan made a major shift this year by exiting the Metro Detroit market. The insurer reported 156,012 individual market enrollees in its 2026 rate filing but only 18,938 in its 2027 filing. Ambetter from Meridian, the company's marketplace arm, will return to Wayne, Oakland, Macomb, and Monroe counties in 2027 and add Bay County, according to a company spokesperson.

Employer-sponsored insurance costs are also rising. KFF data shows the average worker contributed $7,471 toward family coverage this year, a 9% increase from 2025. Marsh, a consulting firm, forecasts that employer costs will rise between 8% and 11% next year. Bret Jackson, president and CEO of the Economic Alliance of Michigan, described the situation as an accelerating affordability crisis. Jackson said the loss of health coverage is quickening, and local leaders from the Small Business Association of Michigan indicated that healthcare costs are the top priority for the incoming governor and state Legislature.

Public comments submitted to the Michigan Department of Insurance and Financial Services revealed widespread opposition to the rate hikes. Seniors, doctors, and brokers expressed concern that premiums were outpacing inflation. One commenter, who reported spending $2,500 per month on family coverage, said the increases would force them to drop coverage entirely. Another stated the hikes would push them to stop buying marketplace insurance and work fewer hours to qualify for Medicaid.

The uninsured rate in Michigan is currently 5.5% of the population, according to the latest Census data. This is below the national rate of 8.4%, but state levels are returning to pre-pandemic figures. Open enrollment for 2027 coverage begins November 1.