Minnesota Individual, Small Group Insurance Rates to Rise 17% in 2027
Minnesota's Department of Commerce announced average 2027 premium increases of 17% for individual and small group health insurance plans, affecting roughly 203,000 individual market enrollees and 184,000 small group enrollees. This marks a second consecutive year of double-digit hikes, following a 22% individual market increase and 14% small group increase in 2026. State officials cited rising medical and drug prices, increased utilization, and growth of "profit-driven entities" in healthcare delivery and financing as drivers. The announcement coincided with a state Senate hearing where health economists linked hospital consolidation, including a newly announced merger between Essentia and HealthPartners, to rising premiums, and comes amid reduced federal premium tax credits and election-year political blame-shifting.
State Medicaid and MinnesotaCare officials should track how commercial market premium spikes and hospital consolidation pressures could increase enrollment pressure on public coverage programs and affect provider rate negotiations statewide.
CHIP · Finance
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