How Much Will Health Insurance Renewals Increase in 2027?
Employer surveys point to roughly 8 to 10 percent, and Michigan regulators approved a 9.6 percent average for small-group plans. Your own renewal depends on your claims, group size, plan and carrier, so treat the range as a budget starting point and not as a quote.
What the 2027 estimates say
Three different measures give three different numbers. The chart puts them on one scale.
National employer surveys
Business Group on Health reports a median projected increase of 9.2 percent for 2027, about 8 percent after plan design changes. The International Foundation of Employee Benefit Plans reports a median of 10 percent. Both survey employers nationally.
Michigan small group
Regulators announced an approved average of 9.6 percent for small-group plans, covering about 400,000 people at businesses with fewer than 51 employees, as reported by Bridge Michigan.
Individual market
The same announcement put the individual-market average at 14.2 percent, which matters if you are weighing an ICHRA against group coverage.
What moves your own renewal
The average is a reference. These are the things that make one group different from another.
Your claims experience
Carriers weigh your group’s claims differently depending on its size. A year with a few large claims can move a renewal more than any market average.
Plan design and network
Changing deductibles, copays or network type can lower the renewal. That trades premium for cost sharing, so model the employee impact.
Turn it into dollars
Apply the range to your premium and divide by enrolled employees to see the per-person effect.
2027 market outlook questions.
Is 8 to 10 percent a safe budget?
It is a reasonable starting range because it spans the national surveys and sits around the Michigan small-group average. It is not a ceiling. A group with high claims can see more, and a group that markets its plan or changes plan design can see less.
Should I wait for my renewal before budgeting?
No. Build a range early, then tighten it when the carrier’s renewal arrives. Starting early also leaves time to market the plan, which is harder in the last few weeks.
Does a small group in Michigan see the same increase as a large employer?
Not necessarily. The 9.6 percent figure covers small-group plans. Larger employers are rated on their own experience and self-funded plans follow their own claims, so the national surveys are the better reference for them.
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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