Most of Minnesota's small group, individual health insurers post double-digit rate increases for 2027

ST. PAUL — Health insurance rates in Minnesota's small group and individual plan markets will rise by an average of 17.4% in 2027, the Minnesota Department of Commerce announced Thursday, Oct. 1.

Increased prices for small group plans — those offered by small and mid-sized employers — range from 10.6% to 21.4%. In the individual health plan market, self-insured Minnesotans could see their rates grow from 9.9% to 21.1%.

These increases will affect about 387,000 Minnesotans. The actual increases to people's monthly premiums will depend on where they live, what plan they select, their age and other factors.

"Health insurance is not a luxury; it's something families rely on," said Julia Dreier, the department's temporary commissioner. "That is why we will continue to scrutinize the rates insurers propose, ensure consumers are treated fairly and work to make health insurance more affordable through state initiatives like the reinsurance program."

For plan year 2026, Minnesota's average rate increases for small group and individual plans were 14% and 22%, respectively.

Ahead of the final 2027 rate changes, Brad Roque, vice president for enterprise accounts at eHealth, said multiple factors, including the growth in GLP-1 prescriptions and newer, more expensive medications and treatments, have had an impact on the nation's health insurance costs.

"Everybody expects an increase year over year," Roque said. "I think the last few years, it's been a little bit more volatile than we've expected, and we've seen larger increases."

In its news release, the state commerce department said without the state's reinsurance program, "the average final rate change proposed by health insurers was 57.9 percent." Through Minnesota's reinsurance program, the state pays for a portion of medical bills above $50,000.

The Minnesota Council of Health Plans, the association representing the state's nonprofit health insurers, in a statement called on state lawmakers to make healthcare affordability a priority, and said the increases were partially driven by Gov. Tim Walz's administration "shifting Medicaid costs onto the private market."

"We need an honest, fact-based conversation with policymakers and the incoming administration about how all parties can work together to slow down the rising cost of care," said Lucas Nesse, president and CEO of MCHP.

Jake Schwitzer, executive director of progressive think tank North Star Policy Action, also called for state action, citing federal changes to Medicaid that take effect next year.

"It's on state leaders to step up," Schwitzer said in a statement. "Minnesota has real tools to bring down costs, from tougher rate review to cracking down on private equity and consolidation in our health care system, and we need the political will to use them."

The availability of individual health plans, offered through the state's MNsure marketplace, varies by county. Most customers in the Twin Cities metro, southwest Minnesota and the Duluth area can choose plans from four different insurers, while residents of some counties, such as Olmsted, have only two insurers to consider.

Minnesota's individual plan enrollment declined in 2026 after a federal premium tax credit expired.