Minnesota Health Insurance Premiums to Rise in 2027

State residents face premium hikes on the MNsure marketplace as employer benefit costs are also projected to increase next year.

Updated on Oct. 27, 2026 in Healthcare

Isometric editorial illustration of a stylized medical cross and a tall structural pillar, representing health insurance cost increases in Minnesota. — Minnesota health insurance premiums are projected to rise by up to 20% in 2027 as rising medical costs impact both marketplace plans and employers. AI Illustration. Upload story photo >

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Health insurance premiums on the Minnesota MNsure marketplace are set to increase between 10% and 20% next year. Concurrently, a Mercer survey indicates employers expect health benefit costs to rise by 8.2% in 2027.

Why it matters

Rising costs are attributed to increased utilization of healthcare services by Minnesotans and the higher unit price of prescription drugs and medical care. The expiration of COVID-era tax credits for ACA plans further compounds these financial pressures for marketplace participants.

Approximately 400,000 Minnesotans receive coverage through the MNsure individual and small group markets. Employers expect benefit costs to climb 8.2% next year, while marketplace premiums are slated to increase by 10% to 20%.

The players

Peggy Flanagan

She is a Minnesota politician who supports a Medicare for All proposal.

Michele Tafoya

She is a broadcaster and commentator who has expressed opposition to Medicare for All.

The details

The Minnesota Department of Commerce continues to regulate insurance companies on the marketplace, though financial assistance through remaining tax credits may help lower monthly premiums for some participants. The sector faces these adjustments following significant cost increases observed last year and a general decline in overall enrollment.

Last year saw large increases in healthcare costs occur.
The 2027 period is when employer health benefit costs are expected to rise 8.2%.
November 4, 2026, marks the upcoming date of the midterm elections.

Market Landscape

The expiration of COVID-era tax credits for the Affordable Care Act plans mirrors broader national discussions regarding the sustainability of marketplace subsidies. This shift positions the MNsure market within a cycle of increasing medical service utilization and rising premium costs.

Minnesota residents should anticipate higher monthly premiums on the MNsure marketplace, which may necessitate a review of current plan selections. Employees with company-sponsored coverage may also see potential adjustments to their health benefits as employers manage rising costs.

The takeaway

Consumers should evaluate their specific plan details and available tax credits before the next enrollment period. Comparing current plan benefits against anticipated premium hikes can help households better prepare for the coming cost adjustments.