Oregon's Division of Financial Regulation finalized 2027 health insurance rates for the individual and small group markets. Individual market rates increased by an average of 21.6 percent, while small group market rates increased by an average of 15.5 percent, according to the division.
The division reduced insurers' proposed small group rate increases from an average of 17 percent to 15.5 percent, with some carriers receiving reductions of up to 8 percent.
Contributing to the rate increases were decreased enrollment in the individual market, greater than expected financial losses, the loss of enhanced federal Affordable Care Act subsidies, heightened medical costs, and cost pressures from tariffs on durable medical equipment and pharmaceuticals, according to the division.
Statewide, two carriers will be available in all counties for individual market coverage, while participation varies by county: seven counties will see four choices, 23 counties will see three choices, and six counties will have two choices.
To help stabilize the 2027 market, the Division of Financial Regulation is budgeting an additional $15 million in reinsurance funds from the Oregon Reinsurance Program to offset anticipated higher-than-usual claims costs. The reinsurance program historically lowered rates by an average of 10.7 percent, with 1 percent of that reduction attributed to the additional $15 million allocation, and has lowered rates for the ninth consecutive year, according to the division.