MICHIGAN (WOWO) — Health insurance costs are climbing again in Michigan, with regulators approving average rate increases of 14.2% for individual plans and 9.6% for small-business coverage heading into 2027. The increases affect roughly 400,000 people who purchase their own health insurance and an other 400,000 covered through small-group plans offered by businesses with fewer than 51 employees. The new rates take effect as open enrollment for Affordable Care Act marketplace coverage begins November 1. At the same time, Michigan has lost more than 130,000 marketplace enrollees in a year, a decline substantially larger than the national average. According to reporting by Bridge Michigan’s Eli Newman, enrollment in Michigan’s federal health insurance marketplace dropped 27% this year. Nationwide, enrollment declined 12%. Neighboring Indiana saw a 28% drop, while Ohio’s enrollment fell 32%. The number of insurers offering ACA marketplace coverage in Michigan has also fallen over the past decade. Seven companies are expected to offer plans in 2027, the same number as this year but less than half the 15 insurers participating in 2016. Plan choices have fluctuated as well. Michigan consumers will have 143 marketplace plans available statewide next year, up from 116 in 2026 but down from 231 in 2023. Options vary by location, leaving some residents with fewer choices than others. Federal changes add to the pressure Several federal policy changes are contributing to the higher costs and declining enrollment, according to the University of Michigan’s Center for Health and Research Transformation. Those include the expiration of enhanced federal premium subsidies, changes to federal insurance rules and provisions included in President Donald Trump’s One Big Beautiful Bill Act. Some of those provisions have not yet taken effect. In a policy brief published this month, the center said the changes collectively narrow eligibility, shorten the enrollment period, add paperwork requirements for people seeking tax credits and increase costs for those who remain insured. Employer-sponsored coverage is also becoming more expensive. A KFF survey found workers contributed an average of $7,471 toward family health insurance coverage this year, a 9% increase from 2025. National projections from consulting firm Marsh indicate employer health benefit costs could rise another 8% to 11% in 2027. Bret Jackson, president and CEO of the Economic Alliance of Michigan, said employers are struggling with the expense. After surveying businesses across the state, the Small Business Association of Michigan reported that health care costs were among employers’ leading concerns and a major priority for the next governor and Legislature. Jackson described the situation as an affordability crisis and warned that the loss of health coverage is accelerating. Insurer exits affect plan availability The number of available plans has also been affected by changes among insurers. Meridian Health Plan of Michigan made one of the largest moves, exiting the Metro Detroit individual insurance market this year. Its rate filings showed enrollment falling from 156,012 people in 2026 to 18,938 for 2027. The company said its Ambetter from Meridian marketplace plans will return to Wayne, Oakland, Macomb and Monroe counties next year, while adding Bay County. Consumers warn they may drop coverage Public comments submitted to the Michigan Department of Insurance and Financial Services showed widespread opposition to the approved rate increases. Seniors, physicians and insurance brokers raised concerns that premiums were rising faster than inflation and the cost of living. Some said they were already struggling to afford coverage. One person reported paying $2,500 a month for family health insurance and said the increases could force the household to drop coverage entirely. Another said higher premiums could lead them to stop buying insurance through the marketplace and work fewer hours to qualify for Medicaid. The financial pressure comes as the number of uninsured residents is increasing. The latest Census figures show approximately 5.5% of Michigan’s population lacks health insurance, compared with 8.4% nationally. Although Michigan’s uninsured rate remains below the national figure, it is returning to levels not seen since before the COVID-19 pandemic. The latest increases affect people who buy individual coverage and those insured through small businesses. Employer-sponsored coverage, Medicaid and Medicare are subject to different rules and costs. The post Michigan Health Insurance Rates Jump 14.2% for Individual Plans in 2027 appeared first on WOWO News/Talk 92.3 FM and 1190 AM. ...read more read less