Maryland and Delaware Will See ACA Rate Increases
Federal tax credit expirations will drive higher health insurance premiums for residents in 2027.
Updated on Oct. 12, 2026 in Insurance
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Maryland and Delaware have approved higher rates for 2027 Affordable Care Act plans as federal lawmakers failed to extend expiring tax credits. Residents in both states will face increased costs when the new premium rates take effect in 2027.
Why it matters
The expiration of federal tax credits reduces financial support for plan participants, forcing state regulators to approve significant premium hikes to maintain coverage viability. This shift directly impacts the affordability of health insurance for thousands of residents as they prepare for the upcoming enrollment period.
Maryland ACA plans face an average rate increase of 14.6% for 2027. In Delaware, some individual insurance plans received approval for average rate increases exceeding 17%.
The players
Maryland Insurance Administration
This state agency is responsible for regulating insurance companies and protecting consumers within the state of Maryland.
The details
State insurance administrations worked to limit proposed increases, but ultimately approved the higher premiums following the lapse in federal tax credit funding. These adjustments reflect the current financial challenges facing the individual insurance market as the federal government stops subsidizing plan costs at previous levels.
Timeline
October 9, 2026: The Maryland Insurance Administration approved the 2027 rate increases.
November 1, 2026: The annual open enrollment period for Affordable Care Act plans begins.
2027: The newly approved insurance premium rates take effect for policyholders.
Market Dynamics
These rate hikes highlight structural vulnerabilities in the insurance market as it adjusts to the expiration of temporary federal subsidies. This move follows a pattern established by the Affordable Care Act, where premium stability remains tied to shifting federal legislative support.
Consumers should prepare for higher monthly premiums when choosing their 2027 health plans during the upcoming open enrollment. Households should review their budget allocations to account for the loss of federal tax credits that previously kept these plan costs lower.
The takeaway
Policyholders should review their plan options early during the upcoming enrollment window to find the most cost-effective coverage. Comparing different tiers and subsidy eligibility remains the primary way for individuals to mitigate the impact of these premium increases.
What happens next
Open enrollment for Affordable Care Act plans is scheduled to begin on November 1, 2026.
Further reading
Learn more about policy shifts and coverage trends in our Insurance section.
Source note: This article includes information reported by 47abc.
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