Health insurance marketplace 2027: Obamacare premiums set to rise 13% as subsidies expire - will you pay more?

Healthcare marketplace: Health insurance is becoming a tougher expense to manage for Americans who buy coverage through the Affordable Care Act marketplace. With premiums expected to climb and enhanced federal subsidies no longer available, some households could struggle to afford the plans they have relied on.

Open enrollment for 2027 coverage began on November 1 in most states and runs through January 15. The average premium for benchmark silver plans is expected to increase by 13%, as per KFF's analysis of federal data.

The higher costs come alongside changes to eligibility rules and increased scrutiny of marketplace enrollment and adding uncertainty for people choosing their health insurance for next year.

When Does ACA Open Enrollment End

Most states are accepting applications for 2027 marketplace coverage until January 15. Some states follow different enrollment schedules.

Consumers can compare available plans and choose coverage during this period. With premiums rising, the monthly price may carry more weight in that decision, particularly for people who receive little or no financial assistance.

Why Are Obamacare Premiums Rising

Benchmark silver plan premiums are expected to rise by an average of 13% in 2027. Cynthia Cox, vice president and director of KFF's ACA program pointed out that rising healthcare costs and hospital market concentration are the main reasons behind the increase, as per an Associated Press report.

The availability of GLP-1 drugs and the No Surprises Act, which took effect in 2022, may also be contributing factors.

The increase could be especially difficult for people who do not qualify for subsidies. Some consumers have turned to bronze plans, which generally have lower monthly premiums than other marketplace plan categories.

How the End of Enhanced ACA Subsidies Affects Consumers

Enhanced federal subsidies helped many Americans pay for marketplace insurance during the COVID-19 pandemic and the years that followed. Those additional subsidies expired after efforts to extend them failed and leaving some consumers facing higher premiums.

Marketplace plan selections fell by 1.2 million during the 2026 open enrollment period compared with the previous year, according to the AP report.

Further restrictions will take effect in 2027. Limiting premium tax credits for certain lawfully present immigrants. Some affected people will still be able to buy marketplace insurance but will no longer qualify for that financial assistance.

Congressional Budget Office estimates the change could leave an additional 1 million people uninsured by 2035.

Why Is the Trump Administration Reviewing ACA Enrollment

The Trump administration has also taken steps to remove people it alleges were improperly enrolled in marketplace coverage.

In September, Vice President JD Vance and other administration officials announced plans to remove 760,000 enrollees, alleging that they had been fraudulently registered or did not exist. Vance said the action, along with the cancellation of related subsidy payments, would save $2.2 billion. That figure reflects the administration's stated estimate.

Will Fewer Americans Have Obamacare Coverage in 2027

Higher premiums could push some consumers to cheaper plans or even lead to drop coverage. Others may lose access to financial assistance because of the eligibility restrictions.

Cox expects marketplace enrollment to decline, saying, "They may or may not be able to afford to continue to keep their coverage into next year," adding that "a lot of them have already moved into bronze plans, which are the cheapest plans," as quoted by AP.