Health Insurance Costs Could Increase Again in 2027 – Here's What to Know Before Open Enrollment

See why costs are increasing, what's causing the changes, and how to prepare for Open Enrollment.

Open enrollment is still a few months away, but many Americans are already preparing for higher healthcare costs.

According to KFF, an independent nonprofit focused on health policy, insurance companies are proposing a median premium increase of 14% for 2027, following a 20% median increase that was finalized for 2026.

If these new rates are approved, health insurance premiums could increase by more than one-third between 2025 and 2027.

For many individuals and families, that's more than just another headline.

It's another year of wondering how much their healthcare will cost, whether their current plan is still affordable, and what options they'll have during open enrollment.

Why Are Healthcare Costs Increasing?

Healthcare costs have been rising for years, and insurers point to several factors driving the proposed increases for 2027.

Among the biggest contributors are:

• Higher costs for hospital care and physician visits
• Increasing prescription drug costs, including GLP-1s and other specialty drugs
• Labor shortages and higher wages across the healthcare industry
• General inflation affecting the cost of delivering care
• Fewer healthy people staying enrolled in Marketplace plans

KFF also projects that the underlying cost of medical care and prescription drugs will increase by about 10% in 2027, exceeding the average growth seen in recent years.

While these costs are largely behind the scenes, they often show up in the form of higher premiums for you. 

Many People Are Already Feeling the Impact

For some households, rising healthcare costs didn't begin with the proposed 2027 increases.

When the ACA's enhanced premium tax credits expired at the end of 2025, many people with health insurance saw significant increases in what they paid out of pocket. 

KFF estimates that out-of-pocket premiums increased by an average of 58% in 2026, while deductibles increased by about $1,000 per person for many who no longer qualified for additional savings.

Although many people with Marketplace insurance continue to receive federal subsidies, others are paying much more than before. 

As a result, a lot of families are taking a closer look at how they pay for healthcare and whether their current coverage still fits their needs.

What This Means During Open Enrollment

If the proposed rate increases are finalized, many people will face another year of trying to fit higher premiums into their budget, which may already be tight. 

These potential changes make open enrollment an especially important time to evaluate your options.

Instead of automatically renewing the same plan, ask yourself:

• How much has my monthly premium increased over the past few years?
• How often do I actually use my healthcare coverage?
• Am I paying for benefits I rarely need?
• Does my healthcare support my everyday wellness, or only show up in emergencies? 
• Is there a healthcare alternative that might be a better fit for my family?

Healthcare needs change over time.

Open enrollment is a great time to make sure you have the support and peace of mind you need at this stage of your life. 

Why More Families Are Exploring Medical Cost Sharing

As healthcare costs continue to rise, more people are looking beyond health insurance and exploring alternatives like Medical Cost Sharing.

When you’re part of a Medical Cost Sharing Community, Members contribute an affordable monthly amount to help share in each other's eligible Medical Needs.

With Knew Health, you also get access to robust Wellness Services and Resources that support you all year, every day. 

It’s important to remember that Knew Health isn’t a replacement for health insurance – it’s a simple, friendly, affordable healthcare alternative.

Knew Health is a great fit for…

• Freelancers, entrepreneurs, and small business owners
• People who recently lost subsidies or were priced out of their health insurance
• People who don't qualify for Medicaid and find Marketplace health insurance too expensive
• People who don't receive health insurance through their employer or spouse's employer
• People looking for an affordable healthcare alternative with flexible options, including some eligible integrative and alternative care

Amid rising healthcare costs, Health Sharing is helping families save thousands of dollars on their healthcare every year.

Open enrollment is an opportunity to rethink what you want from your healthcare experience.

Affordability is important, but so is access to resources that help you stay healthy before a major Medical Need arises.

With Knew Health, you get both: the support you need to protect your health everyday, and the peace of mind you need in emergencies. 

Supporting Your Health Beyond Open Enrollment

At Knew Health, we believe healthcare should support more than unexpected Medical Needs.

That's why your Membership includes Wellness Services and Resources designed to help you make informed decisions about you and your family’s health all year. 

Your Knew Health Membership includes:
✔ Medical Cost Sharing

✔ 24/7 telemedicine

✔ Annual well visits and routine screenings

✔ Free and low-cost lab work

✔ Health Coaching

✔ Live Wellness Sessions with health experts

✔ Fitness and wellness classes through FitOn

✔ Discounts on supplements through the Knew Health dispensary and WellzyPerks

✔ A Self-Care Credit for eligible Wellness Services

✔ And much more

Whether you're reviewing your current healthcare costs or exploring new options during open enrollment, it's worth looking beyond the monthly premium alone.

The right healthcare option should help you prepare for the unexpected while also supporting your long-term health.

The Bottom Line

Healthcare costs continue to rise, and current projections suggest many ACA Marketplace plans could get even more expensive in 2027.

While final rates won't be confirmed until later this year, the proposed increases are a good reason to take a closer look at what you're paying and what you're actually getting from your healthcare.

Knew Health Members are already paying 40%–50% less on average than Marketplace plans, with many saving even more. And those savings are based on today's costs, before the newly proposed 2027 increases.

If you're curious what that could look like for you, use the Knew Health Cost Calculator to see your monthly price and get a clearer picture of what you could save.

👉 See Your Price

While affordability is only part of the equation, Knew Health's mission is to make healthcare more affordable and bring a more human experience back to it. That means a Knew Health Membership offers more freedom in how you choose your care, a host of included preventive tools to keep you well, concierge support to help you navigate your options, and an entire Community ready to step in when the unexpected happens.

As open enrollment approaches, consider more than the monthly price. Ask whether your healthcare gives you the choice, support and value you want for yourself and your family.

The more informed you are now, the more confident you can feel choosing the option that's right for you.