Division of Financial Regulation finalizes 2027 health insurance rates, acts to preserve coverage choices statewide

The Division of Financial Regulation (DFR) has issued final 2027 rate orders for Oregon's individual and small group health insurance markets. As the trend continues to show decreased enrollment of the individual market and greater than expected financial losses in recent months, DFR is taking action to stymie even higher rates by using available state dollars for the state's reinsurance program.

In the individual market, DFR approved individual market increases that averaged 21.6 percent based on the new data and updated rate requests. DFR scrutinized the rate requests under actuarial standards to ensure that the rates were actuarially sound and justified based on additional market changes.

In the small group market, final orders reflected DFR's 1.5 percent reduction of insurer's proposed average rates of 17 percent to 15.5 percent, including some reductions of up to 8 percent.

The finalization of rate orders comes as carriers gained more experience in the market and re-evaluated their market presence. Continued marketplace uncertainty with the loss of the enhanced federal Affordable Care Act subsidies, heightened medical costs, tariff pressures on durable medical equipment and pharmaceuticals all caused greater cost pressures that were reflected in the rates. Statewide, in the individual market, two carriers are available statewide, seven counties will see four choices, 23 counties will see three choices, and six counties will have two choices. A table of county participation and final rate decisions for both the individual and small group markets can be found on our website.

To help stabilize the market in 2027, DFR is budgeting for an additional $15 million in reinsurance funds from the Oregon Reinsurance Program to offset anticipated higher-than-usual claims costs. DFR will also explore enrollment caps to certain plans to balance consumer choice with marketwide financial stability.

The Oregon Reinsurance Program is one of the tools Oregon uses to hold down health insurance premiums. The state helps insurers absorb the cost of the most expensive medical claims, which reduces their risk and means lower premiums for people who buy insurance on their own. The reinsurance program lowered rates by an average of 10.7 percent, including 1 percent reduction due to the additional budgeting of $15 million for the 2027 plan year. Reinsurance minimizes the price increases felt by consumers and operates to lowered rates for the ninth straight year. Oregon has resubmitted a renewal request to the federal government to maintain this program. The Oregon Legislature adopted Gov. Kotek's 2025-27 funding plan, which continued revenue streams that keep the reinsurance program stable.

Consumers seeking information and assistance with individual market plans can reach out to the Oregon Health Insurance Marketplace at OregonHealthCare.gov or by phone at 855 268 3767 (toll free).

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Contact information

Jason Horton, public information officer
503-798-6376
jason.a.horton​@dcbs.oregon.gov​​​​​​​​​​​​​​​