Insurance
Home›Insurance›Health Insurance›Small group premiums may rise 14% in 2027, KFF data sh…
Small group premiums may rise 14% in 2027, KFF data shows
A Peterson-KFF analysis of nearly 300 insurers finds a median 14% request for 2027, driven by medical trend at 10.8% and faster prescription drug costs including GLP-1s.
Small group health insurance premiums are projected to face one of the largest increases in recent years, with insurers seeking a median 14% premium rise for 2027, according to data analyzed by the Peterson-KFF Health System Tracker.
Insurance Business reports the 14% median is based on rate filings from nearly 300 insurers across all 50 states and Washington, D.C., and it is higher than the 11% median insurers requested going into 2026. The tracker also puts the underlying medical trend at a median 10.8%, reflecting both higher prices and heavier utilization.
Insurers cited rising costs tied to hospitalizations and physician care, along with accelerating prescription drug spending as key drivers. GLP-1 weight-loss treatments are singled out as a pressure point, with some plans cutting coverage for weight loss but costs still climbing as diabetes patients use GLP-1s at higher rates.
The story also highlights how renewal pressure extends beyond rates. KFF analysis shows fully-insured small group enrollment fell 41% from 17 million in 2013 to 10 million in 2024, as healthier groups have moved to level-funded arrangements, leaving a more costly risk pool for remaining fully insured customers, the outlet said.