Michigan small-group health insurance rates rise 10% in 2027.
That is the state-approved average for fully insured plans sold to Michigan employers with 50 or fewer employees. Almost nobody pays the average. By our analysis of the approved filings, HMO plans rise 11.1% on average and PPO plans 8.0%, and the range between carriers runs from 7.0% to 14.8%.
The approved 2027 increases, carrier by carrier.
Michigan carriers file small-group rates with the Department of Insurance and Financial Services (DIFS) each year. These are the average changes DIFS approved for plan year 2027, with each carrier’s enrollment and plan type.
| Carrier | Plan Type | People Covered | 2027 Change |
|---|---|---|---|
| Blue Cross Blue Shield of Michigan | PPO | 122,214 | 7.0% |
| Blue Care Network of Michigan | HMO | 147,526 | 10.7% |
| Priority Health | HMO | 86,131 | 11.6% |
| Priority Health Insurance Company | PPO and POS | 2,479 | 10.7% |
| Health Alliance Plan (HAP) | HMO | 22,605 | 11.6% |
| Alliance Health and Life Insurance Company | PPO and EPO | 16,845 | 11.6% |
| UnitedHealthcare Insurance Company | PPO | 6,612 | 14.8% |
| UnitedHealthcare Community Plan | HMO | 756 | 14.5% |
| Statewide, weighted by enrollment | All | 405,168 | 10.0% |
Source: Michigan DIFS small-group rate filings for plan year 2027, approved September 2026. Paramount is leaving the Michigan small-group market for 2027. The HMO and PPO averages are our own calculation: each carrier’s approved change weighted by its enrollment, grouped by the licensed entity that sells the plan.
Three things the 10% average hides.
HMO and PPO Moved Differently
HMO plans average 11.1% and PPO plans 8.0%. Quote the 10% figure to an HMO group and its renewal looks better than its market really was. Quote it to a PPO group and the renewal looks worse.
One Filing Pulls the Average Down
Seven of Michigan’s eight small-group carriers filed above 10%. The average lands at 10% only because Blue Cross Blue Shield of Michigan’s PPO filed 7.0% and covers more than 120,000 people.
Your Renewal Adds Your Own Census
Michigan small-group rates can vary only by rating area, age and tobacco use, and each employee is rated individually. So your renewal is your carrier’s filed change plus a year of aging in your own group, which is why it rarely matches the table.
Under 50 employees, the filing is the starting point.
A filed small-group rate cannot be talked down; the carrier has no better number to give. What changes your cost is where you buy and what you buy.
Compare the Filings
An eight-point spread between carriers is the real opportunity set. A plan that replicates yours at a carrier that filed lower is the cleanest saving available, because nothing about the coverage changes.
Check the Plan Type
In 2027 the PPO side of the market filed lower than the HMO side. That reverses some old assumptions, so price both before you assume the HMO is the cheaper option.
Revisit the Contribution Split
How the cost is shared between you and your employees is entirely your decision, and it often moves the employer’s cost more than a carrier change does.
We don’t control whether a renewal opens up or down. That is your carrier’s filing or your own claims. We control whether the number you are given is the number you accept.
What Michigan employers ask about 2027 rates.
How much is small-group health insurance going up in Michigan in 2027?
The state-approved average is 10.0% for fully insured small-group plans, with carriers ranging from 7.0% to 14.8%. HMO plans average 11.1% and PPO plans 8.0%.
Are the 2027 increases final?
Yes. DIFS approved the 2027 small-group filings in September 2026, almost all of them at the rates the carriers requested.
Do these increases apply to employers with more than 50 employees?
No. Large-group rates are not filed with DIFS, and self-funded plans have no filed rate at all. Above 50, your renewal is driven by your own claims experience and your carrier’s underwriting.
Why is my renewal higher than my carrier’s filed increase?
Because each employee is rated by age, a year of aging in your group adds to the filed change. A plan change, a move between rating areas or new hires can push it further. We can show you exactly which part is which.
Send us your renewal.
We’ll tell you whether it looks competitive, where we see opportunity, and the five questions we’d put to your carrier. No cost, and no obligation to move anything.
The renewal letter
Your current plan summary
Contribution split by tier
Enrolled counts by tier
Four documents — two more if your group is 50 or more. Nothing else; every extra one is a reason to postpone.
An independent employee benefits consulting firm. We look at the entire benefits program — cost, plan performance, risk and administration.
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