Health insurers seek steep rate hikes in Massachusetts. Here’s how much your premiums could increase…
Many small business employees and individuals may face significantly higher health insurance premiums next year due to proposed rate hikes. Critics warn that these increases will further burden businesses and residents already struggling with high costs.
The Division of Insurance will review 2026 market rates submitted by carriers, averaging a 13.4% increase, more than double the rate approved two years ago. Insurers cite rising costs from providers and pharmaceuticals for the hikes, while small business leaders fear the added financial strain on members in an increasingly unaffordable Massachusetts.
Gov. Maura Healey acknowledged the unsustainable healthcare costs reflected in the proposed rates and emphasized the need to reduce healthcare expenses in the state.
Eight major health insurance companies submitted their proposed rates for the upcoming year, with increases ranging from 9.9% to 16.2%. The average increase of 13.4% will impact over 720,000 renewing members, significantly higher than previous years.
Industry experts express concerns over the impact of these rate hikes on small businesses, especially amidst rising energy and unemployment insurance costs. Retailers Association of Massachusetts President Jon Hurst highlights the challenges faced by small businesses due to escalating healthcare premiums.
The Division of Insurance will assess each rate filing individually, aiming to ensure affordability and fairness in the proposed increases. A virtual public hearing is scheduled for June 17, with a decision expected in August.
Health insurers attribute the majority of rate increases to rising medical and pharmacy claims, with administrative costs forming a small fraction of the total hike. Insurers struggle to negotiate lower rates with providers facing significant cost demands.
Financial pressures extend across the healthcare sector, with margins for private health insurers declining in recent years. Efforts to contain costs include regulatory measures to limit deductible and copay growth in line with medical inflation.
Regulators are exploring additional actions to address escalating healthcare expenses and promote affordability in Massachusetts.
