Michigan health insurance premiums to rise by 15% in 2026

In Michigan, residents with health insurance plans are anticipating significant rate increases for 2026, as outlined by the Michigan Department of Insurance and Financial Services. A report indicates that nearly half of the individual health coverage plans offered by various companies are facing proposed rate hikes. Specifically, 121 out of 251 individual plans are proposed to increase by 15% or more. This would affect over 530,000 residents purchasing health insurance either directly or through small group plans. Furthermore, 50 out of 573 small group plans are also subject to similar rate hikes, showing a trend across different health coverage plans. The open enrollment period for health insurance selections in Michigan is scheduled from November 1 to January 15. During this window, individuals and families can choose or change their health insurance plans, which can only be altered outside this period under special circumstances, such as changing jobs or marital status. As these rate hikes are proposed, public feedback will be collected until August 1, which is crucial for the Department of Insurance and Financial Services' evaluation process regarding the 2026 plans. On a broader scale, health coverage under the Affordable Care Act is also facing a potential increase of 15% or more due to policies enacted by the Republican Congress and the Trump Administration. A recent analysis by KFF and the Peterson Center on Healthcare noted that premiums for individual ACA coverage are on track to increase by a median of 15%, marking the most significant hike since 2018. Researchers link these increases to the expiration of enhanced tax credits and changes in healthcare regulations instigated by new legislation. The recent cuts to Medicaid and ACA plans, expected to eliminate coverage for approximately 12 million Americans within the next decade, further exacerbate the situation. Health insurers have already begun adjusting their profit forecasts, anticipating higher rates due to increasing healthcare costs driven by legislative changes. As a result, future enrollees may find themselves with fewer choices and higher premiums in the individual market, contributing to a potential decline in the overall health of the risk pool as healthier individuals may decide to forgo coverage in response to increased costs.