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New Mexico sets 19.8% average increase for 2027 small group premiums
State regulators cited a worse-than-expected 2025 claims year and a shrinking pool of small employers as drivers for the 2027 rate update.
New Mexico regulators approved an average 19.8% increase for fully insured small group health premiums in 2027 for employers with 50 or fewer workers, according to Insurance Business. The Office of the Superintendent of Insurance signed off on the 2027 rates on Thursday, with the approved figure close to what insurers requested.
Insurers had filed for an average increase of about 20.2%, while for 2026 the regulator approved an average increase of 16.8%. Nationally, the median proposed small group increase for 2027 is about 14%, based on a Peterson-KFF Health System Tracker review of filings from 295 insurers.
The regulator said the 2027 pricing was grounded in 2025 claims results that came in above expectations, and it also pointed to a shrinking pool of small employers. Five carriers will offer New Mexico small group plans next year, including Blue Cross and Blue Shield of New Mexico, Presbyterian Health Plan, and UnitedHealthcare of New Mexico, and all five also sold coverage this year.