Three major health insurance companies are proposing sharp rate increases in 2027 for many Connecticut residents and with many living paycheck to paycheck, state leaders are concerned about the rising costs.
The proposed increases would impact nearly 220,000 residents statewide in both individual and small group plans offered on and off of Connecticut’s insurance exchange, Access Health CT.
That includes an average hike of nearly 23% for individual plans for ConnectiCare, nearly 19% for United Healthcare, and an average increase of nearly 13% for Anthem with 17% for small group plans.
The increases must be approved by the state insurance department under a law that says the new rates cannot be “excessive, inadequate, or unfairly discriminatory.” The rate hikes that are currently under review are subject to a public hearing, and no final decisions are expected until September.
State Attorney General William Tong blasted the increases in bipartisan criticism.
“These double-digit demands are unaffordable, excessive, and unacceptable, and we’re going to scrutinize every page of these applications,” Tong said. “Year after year, insurers pad these rates with fuzzy math, double-counted costs, and unsupported assumptions. They need to come before the Connecticut Insurance Department prepared to justify every analysis, and they are going to need to explain why they remain utterly unwilling and unable to use their leverage to negotiate with healthcare providers and drive down these runaway healthcare costs.”
State Sen. Matt Lesser, a Middletown Democrat who co-chairs the human services committee, agreed with Tong.
“Once again, the insurance industry is coming before us with unsustainable rate requests,” Lesser said. “It underscores the need for Connecticut to consider a true public option as we work to make health insurance affordable for all.”
While politicians and consumers blasted the hikes, others say there are reasons for the potential increases. Those include increasing medical costs that are traditionally higher than the rate of inflation and the expiration of important federal premium subsidies that had been increased during the coronavirus pandemic.
“Health plans work every day to improve affordability, but health care costs continue to rise, driven by increased spending on medical services, prescription drugs, and new treatments,” said Susan Halpin, a longtime Capitol lobbyist who serves as executive director of the Connecticut Association of Health Plans.
“State policies that expand access to services while limiting the ability of health plans to promote value also show up in the price of coverage. Premiums ultimately reflect those underlying costs.”
The state insurance department will be closely scrutinizing the rate requests.
“These filings reflect a broader challenge facing Connecticut’s health care system,” said Josh Hershman, the new insurance commissioner.
“Connecticut families are under increasing pressure from rising health care costs, and the current trajectory is unsustainable. As always, the department’s experienced actuarial team will thoroughly review every filing to ensure requested rates are justified under state law. Lasting progress will require action across the health care system,” he said. “Providers, hospital networks, pharmaceutical manufacturers, pharmacy benefit managers, insurers, and policymakers all have a responsibility to help address the factors driving costs.”
Halpin said the insurance companies believe the rates are justified.
“We are confident that review of the actuarial data by the Connecticut Insurance Department will show that the proposed rates accurately reflect the anticipated cost of providing coverage,” she said.
Meanwhile, a new national report this week found that “nearly half of working-age adults in the United States (46%) struggled to afford healthcare for their families in 2025, including more than one-third (35%) who said someone in their family had unmet healthcare needs because of high costs,” according to the research by the Urban Institute that was funded by the Robert Wood Johnson Foundation.
“While uninsured adults were most likely to report affordability challenges (60%), many individuals with health insurance coverage also said their families were challenged by high healthcare costs,” the group said. “Among people who get insurance through an employer, 39% cited affordability challenges, while 54% of those who purchase insurance on their own and 57% of people enrolled in Medicaid reported difficulty affording care.”
The analysis of health care affordability was based on a survey of more than 10,000 adults from the Urban Institute from December 2025 and focused on families with adults aged 18 to 64.
State Sen. Jeff Gordon of Woodstock, a Republican who is also a medical doctor and the former president of the Connecticut State Medical Society, joined in the bipartisan criticism.
“Unaffordable, unsustainable, double-digit annual health insurance increases … yet again?” asked Gordon, who serves on the public health committee. “A nearly 18% average small group rate increase? A 16.2% average increase for individuals? Join me in urging state government officials to reject these hikes.”
The public may submit comments on the proposed rates on the rate filing webpage or by mail to the Connecticut Insurance Department at P.O. Box 816, Hartford, CT 06142-0816.
A public informational session on the rate filings will be held by the Connecticut Insurance Department in August and the public will also have the opportunity to speak there. The date for that has not yet been set.
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