Health insurers again propose double-digit premium increases

May 26, 2026 - 18:58

Nearly 700,000 Bay Staters are facing the prospect of double-digit premium increases next year as insurers struggle to handle cost pressures across the healthcare landscape. The proposed rate hikes, submitted to state regulators, would affect individuals and small businesses who purchase coverage through the state's health insurance marketplace. Insurers cite rising hospital costs, expensive prescription drugs, and increased demand for medical services as the main drivers behind the requested increases.

One major carrier has proposed an average increase of 12.5 percent for individual plans, while another seeks a 14 percent jump for small group policies. These figures have drawn sharp criticism from consumer advocates, who argue that working families cannot absorb such steep costs. The Massachusetts Division of Insurance will review the proposals over the coming weeks, with the authority to approve, deny, or modify the requested rates.

State officials have expressed concern about affordability, noting that healthcare costs already consume a significant portion of household budgets. The proposed increases come at a time when inflation has eased in other sectors, but medical expenses continue to climb. Insurers warn that without adequate rate adjustments, they may be forced to narrow provider networks or reduce benefits. A final decision on the rates is expected before the fall enrollment period begins.