Oregon poised to adopt double-digit health insurance premium hikes in 2027

Oregonians who own small businesses or buy their health insurance as individuals on the state’s health insurance marketplace could see a more than 15% increase in their premiums in the next year, according to the state’s top financial regulators.

The Oregon Division of Financial Regulation announced last week that it had reviewed recent rate hike proposals from major health insurance companies and decided on an average 16% increase in costs to individual consumers on the Oregon Health Insurance Marketplace. That’s alongside a 15.5% increase for plans covering small businesses with up to 50 employees. 

State insurance regulators will finalize the rates in early September. Estimates provided by financial regulators show that the proposed rates would cost a 40-year old in Portland seeking a middle-tier insurance policy – or a silver health insurance plan – anywhere from $571 to $689 in premiums monthly. For small group plans with the same parameters, that plan cost per person ranges from $509 to $754, depending on the insurance company.

Insurance companies such as Moda Health Plan and BridgeSpan Health Company, which are part of the marketplace, had argued they needed to hike rates closer to 17% in light of heightened medical costs, the loss of some marketplace insurance companies, and tariffs making medical equipment and pharmaceuticals more expensive. But Oregon regulators framed the lower rates as a win that would save consumers approximately $30 million in premiums next year. 

Oregon financial regulators pointed to “uncertainty” in light of Congress’ decision not to extend enhanced tax credits for the Affordable Care Act last year, saying those benefits made health insurance more affordable for nearly 120,000 Oregonians. People who make more than 400% of the federal poverty level, or $63,840 for an individual’s annual income and $132,000 for a household of four people, no longer qualify for these subsidies which Congress passed in 2021 to address the fallout of the COVID-19 pandemic.

“Increasing insurance rates are part of the rising cost of living felt by many Oregonians,” said Oregon Insurance Commissioner TK Keen in a statement. “Consequently, I’m proud of the work my dedicated team here at DFR has done to protect Oregonians’ pocketbooks by scrutinizing the proposed increases further and appropriately turning the dial downward.”

The increased rate proposals come as Oregon has taken action on the federal level to push back on rising health insurance costs. Attorney General Dan Rayfield last week announced a lawsuit against the Trump administration alongside 20 other states over a new federal rule that would reduce the availability of caps on out-of-pocket costs, reinstate income-verification requirements and expand last-resort health care plans designed for emergencies. 

“Time and time again, this administration has shown it’s willing to strip away the things people count on, whether it’s health coverage, food assistance or basic protections, all to benefit a select few at the expense of working families,” Rayfield said in a statement. “We’re fighting back against the federal administration’s efforts to make Americans sicker, poorer, and less free.”

Oregonians who want assistance with the marketplace can reach out to state officials at oregonhealthcare.gov or by phone at (855)-268-3767. The number is toll-free.