AI-assisted summary Proposed increases average 16.8% for individual plans and 11.1% for small group plans.

Blue Cross Blue Shield of Michigan, the state’s largest insurer, has requested increases of 18.2% for individual plans and 11.2% for small group plans.

Big price hikes are coming again next year to health insurance premiums in Michigan for businesses and individuals.

A new report from the Michigan Department of Insurance and Financial Services shows that health insurance plans covering nearly 950,000 Michiganders are seeking regulators’ approval for double-digit rate increases for 2026.

The proposed premium increases would average 16.8% for individuals policies, including those sold on the Healthcare.gov website, which some call “Obamacare.” That is a bigger request than last year’s average 10.9% rate increase that was ultimately approved.

For small group policies — those for businesses and organizations with fewer than 51 employees — the average rate increase would be 11.1%, or slightly more than last year’s 11.3% increase.

Blue Cross Blue Shield of Michigan, the state’s largest insurer, is seeking average rate increases of 18.2% for its individual market plans and 16.3% for its individual market Blue Care Network HMO plans, together covering 153,427 enrollees

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For small groups, The Blues is seeking an average increase of 11.2% and 12.4% for its small groups HMO plans, together covering 274,282 enrollees.

Those rate hikes would come even as The Blues, as of Jan. 1,. no longer covers the popular but expensive class of GLP-1 weight-loss drugs, including Mounjaro and Wegovy, for patients who only use them to lose weight. (Coverage for diabetes patients continues.)

Asked by the Free Press for an explanation for their proposed 2026 rate increases, Blue Cross said in a statement on Monday, July 14, that they are a result of higher utilization by patients of health care services and “skyrocketing” pharmacy costs.

The statement also pointed to The Blues reported $1.7 billion underwriting loss in 2024, which gave it its largest negative operating margin — 4.2% — in years.

“Blue Cross Blue Shield of Michigan is working diligently with partners across the health care ecosystem to manage rapidly rising health care costs,” the statement said.

“Affordability of health insurance is a key component to maintaining access to care for our members and ensuring the health of our communities. We will be working with our customer groups to review the wide array of plans in our portfolio to find the option and price point that works best for them given the rising medical cost challenges.”

Priority Health also seeking rate hikes

Priority Health is seeking an average 14.4% increase for its individual market plans and an average 9.7% rate hike for its small groups.

Priority Health said in a statement that their proposed rate hikes reflect the rising use and cost of “emerging” therapies and treatments; more utilization of health care services, including behavioral health; and higher costs for prescription drugs, including the GLP-1 drugs.

Priority Health, similar to Blue Cross, also doesn’t cover GLP-1 drugs for just weight loss.

Expanded subsidies expire

The impact of rising premiums for individual market plans will be greater for some than others, due to the expiration at the end of this year of extra Healthcare.gov subsidies for low and middle-income earners.

Those extra subsidies, which began in 2021, expanded eligibility for the Affordable Care Act’s tax credits to those earning over four times the federal poverty level, or $62,600 for an individual of $128,600 for a family of four, by capping premium payments for a silver “benchmark” health plan on the Healthcare.gov marketplace at 8.5% of their income.

The subsidies also made available a zero dollar silver plan for those with incomes around the poverty line, which is $15,650 this year for an individual. Prior to the extra subsidies, those individuals had to pay about 2% of their income for a silver plan, according to the Kaiser Family Foundation.

All told, the extended subsidies had reduced premiums by an average of $705 a year for those receiving them, the Kaiser Family Foundation reported.

In 2026, individuals with incomes over four times the poverty level will again need to pay the full freight of their health plan’s premium.

However, there will still be Affordable Care Act subsidies available for those whose modified adjusted gross income is between 100% and 400% of the federal poverty line.

The expanded subsidies started with former President Joe Biden’s American Rescue Plan of 2021 and were extended by the Inflation Reduction Act of 2022.

There was no extension included in President Donald Trump’s recently signed One Big Beautiful Bill Act, so the Affordable Care Act subsidies are now set to expire at the end of the year.

The Michigan Department of Insurance and Financial Services is accepting comments on the proposed rate increases until July 31 via email at DIFS-healthratecomments@michigan.gov.

Meridian Health, which is seeking a 16.9% average increase next year for its individual market plans, didn’t respond to a message seeking comment for this story.

Contact JC Reindl: 313-378-5460 or jcreindl@freepress.com. Follow him on X @jcreindl.