2027 ACA Marketplace Rates Are Up. Here’s How Meridio Can Help.

If your business relies on the ACA Marketplace for coverage, brace yourself again for higher rates in 2027. According to KFF, after a 26% jump in 2026, marketplace premiums will rise again in 2027 at an average of 13% or more. Plus, insurers are leaving some markets, and fewer people qualify for financial help. Here is what is driving 2027 increases, which businesses are most impacted, and how Meridio can help.

How much are ACA Marketplace rates increasing in 2027, and why?

Marketplace premiums are up 42% on average since 2025, according to KFF, marking the second straight year of double-digit increases. Insurers point to several overlapping pressures that impacted their 2027 rates:

• Higher costs for care: Rising prices for health services, general inflation, and labor shortages affected employer plans as well, not just the Marketplace.
• Expired enhanced tax credits: The enhanced premium tax credits that lowered costs for many enrollees ended after 2025.
• A less healthy risk pool: The risk pool is the group of people whose costs an insurer spreads premiums across. Healthier enrollees are the most likely to drop coverage when prices rise, and insurers estimate this shift added about four percentage points to premiums in 2026, with a similar effect expected in 2027.
• Fewer insurers: As of late October 2026, 11 carriers had announced plans to leave at least one state's Marketplace for 2027. Cigna is leaving the individual market in all 11 states where it participates.

These factors feed each other. Higher prices push healthier people out, a sicker pool pushes prices up, and smaller markets give insurers less reason to stay. In fact, marketplace enrollment had dropped 12%, or 2.6 million people, and the Congressional Budget Office projects enrollment could fall to 13.1 million in 2027 from a peak of 22.4 million in 2025.

Which businesses rely on ACA Marketplace coverage?

The Marketplace is a major source of coverage for business owners and the people who work for them. KFF estimates that 48% of adults with individual market coverage are self-employed, own a business, or work for a business with fewer than 25 employees.

Whether they buy group plans through the SHOP Marketplace or their teams buy coverage individually, the businesses and workers most likely to feel 2027 increases include:

• Small to mid-sized businesses: Some employers with up to 50 employees (100 in some states) offer group coverage through the SHOP Marketplace, and those plans face the same cost pressures driving individual premiums. Others do not offer group coverage, so employees buy Marketplace plans on their own. In both cases, higher premiums strain budgets and can make it tougher to attract and keep good employees.
• Businesses with mixed W-2 and 1099 workforces: Teams that include contractors, gig workers, or part-time and field staff often fall outside traditional group plans. Learn more about health insurance options for 1099 contractors.
• Owner-operators and self-employed professionals: Owners of small to mid-sized businesses, along with consultants and other self-employed professionals, often cover themselves and their families through the Marketplace. Many earn more than 400% of the federal poverty level (about $63,840 for a single person in 2027), the cutoff for premium tax credits, so they now pay full price.
• Employers that reimburse Marketplace premiums: Some businesses give employees a set amount to buy their own plan, often through an individual coverage health reimbursement arrangement (ICHRA). When Marketplace prices climb, that allowance covers less.

For these businesses, the impact goes beyond the premium itself. Higher costs can make it harder to recruit, keep good people, and offer coverage your team will actually use.

Why Meridio is an ideal alternative to the ACA Marketplace for businesses

The typical alternative is a traditional group health plan. It’s familiar, but costs are still rising: small group premiums face a proposed median increase of about 14% for 2027 (KFF via Insurance Business). And unfortunately, many small businesses are not able to qualify for group plans.

The good news is, Meridio offers a viable alternative, with more affordable plan strategies and options. If Marketplace costs are pushing your business to rethink coverage, Meridio can help you find a more sustainable path. We are a health benefit solutions provider, and our focus is helping businesses balance what they can afford with coverage that fits what their team actually needs.

That starts with understanding your business and identifying ideal paths. We look at:

• Your budget: We help match options based on your goals and budget, with plans starting at $190 a month.
• Your workforce: We build around your team’s mix, including W-2, 1099, part-time, and multi-location workers.
• Your employees’ needs: We look at what your team actually needs from their benefits, not just the lowest price.
• Your options: We help you compare plans tailored to your goals rather than defaulting to whatever the Marketplace or a renewal notice offers.

Our guidance and support continues well after the decision is made:

• Licensed Benefit Guides help employees understand their options and choose coverage with confidence.
• Customer Success Managers serve as a consistent point of contact for your business, from implementation through renewals.
• Customer Care helps your team with everyday questions throughout the year.

The best fit depends on your specific situation, so it helps to review options with someone who can look at your workforce and goals. Our post on rising health benefit costs in 2027 walks through additional paths employers are taking. To learn more about our approach, read why businesses choose Meridio for health benefits, or see how one business owner moved from Marketplace coverage to Meridio.

Rising ACA Marketplace rates are a real challenge heading into 2027, especially for small to mid-sized businesses that have relied on Marketplace coverage. But higher premiums do not have to mean settling for coverage that strains your budget or falls short for your team.

As a business, you have options. Interested in seeing what options make the most sense for your business in 2027? Talk with our team about your benefits.