Multiple States Propose Double-Digit Health Insurance Rate Increases for 2026

Health insurance premiums across multiple states are expected to rise significantly in 2026 due to increasing medical costs, higher utilization of benefits, and the expiration of enhanced federal premium tax credits. In Pennsylvania, proposed rate hikes average 19% for individual plans and 13% for small businesses, influenced by higher outpatient service costs and pending subsidy expiration. Montana insurers have requested even steeper increases, with Blue Cross Blue Shield seeking up to a 28% average rise, citing increased medical and drug expenses. Washington state faces an average requested increase of 21.2%, with concerns that these hikes could lead some consumers to forgo coverage amid subsidy cuts and inflation-driven cost pressures. Maine is projected to experience some of the highest increases in the Northeast, with average individual market rate hikes proposed at 26%, reflecting insurers' underwriting losses and the need to cover rising claims costs. Overall, these increases reflect a nationwide trend tied to federal policy changes, inflation, and evolving healthcare utilization patterns, with final approvals pending and variability depending on region and plan type.