Oregon Approves 2027 Health Insurance Rate Increases

SALEM, Ore. — Oregon’s Division of Financial Regulation has finalized health insurance rates for 2027, approving average increases of 21.6% in the individual market while reducing proposed increases for small businesses.

The rate decisions come as enrollment in Oregon’s individual health insurance market continues to decline and insurers report higher-than-expected financial losses. State regulators say they are using additional funding for Oregon’s reinsurance program to help limit the impact of rising costs on consumers.

For the individual market, DFR approved rate increases averaging 21.6% after reviewing insurers’ requests and updated market data. Regulators examined the proposed rates under actuarial standards to determine whether the increases were justified and financially sound.

In the small group market, which covers employer-sponsored plans for small businesses, insurers had proposed average rate increases of about 17%. DFR reduced those increases to an average of 15.5%, with some insurers receiving reductions of as much as 8% from their original requests.

According to DFR, several factors contributed to the higher rates, including uncertainty surrounding the loss of enhanced federal Affordable Care Act subsidies, rising medical costs, tariff pressures affecting durable medical equipment and pharmaceuticals, and insurers reassessing their participation in the Oregon market.

Consumers will continue to have multiple insurance options across the state. Two carriers will offer individual market coverage statewide, while seven counties will have four choices, 23 counties will have three choices and six counties will have two choices.

To help stabilize the market, DFR is budgeting an additional $15 million from the Oregon Reinsurance Program for 2027. The money is intended to offset unusually high claims costs and reduce pressure on premiums.

The reinsurance program lowers insurers’ exposure to the most expensive medical claims, allowing carriers to reduce premiums for people who purchase insurance on their own. DFR said the program is expected to reduce individual-market rates by an average of 10.7% in 2027, including an additional 1% reduction resulting from the extra $15 million in funding.

The program has helped lower or moderate premiums for consumers for nine consecutive years. Oregon has also resubmitted a request to the federal government to continue the program, while the Oregon Legislature’s 2025-27 funding plan maintains revenue streams supporting the program.

DFR said it will also explore enrollment caps for certain plans as a way to balance consumer choice with the financial stability of the overall market.

A county-by-county breakdown of insurer participation and final 2027 rate decisions is available through the Oregon Division of Financial Regulation’s rate and county coverage information.

Oregonians seeking information or assistance with individual health insurance plans can contact the Oregon Health Insurance Marketplace or call 855-268-3767.

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