Last week, I opened the renewal notice from MNsure and found myself staring at the screen for a while. The premium numbers for next year were noticeably higher than this year's.

For freelancers, personal insurance is a significant monthly expense, so I couldn't just overlook it. This time, I made sure to investigate why the rates had increased so much.

The Minnesota Department of Commerce announced the final premium rates for 2027 at the end of September. They officially stated that the average increase in the individual market is 17.4%.

According to some news sources, the figure of 17.7% also appears. This is a weighted average calculated by ACASignups based on the number of enrollees inside and outside the exchange.

While the calculation methods differ, both figures indicate an increase in the high 17% range. It's clear that both show a double-digit increase.

Looking at the differences by insurance company, there are quite significant variations. HealthPartners, Inc. saw the largest increase at 21.1%, while HealthPartners Insurance Company increased by 18.0%.

Blue Plus is at 17.3%, Medica at 13.8%, and Quartz at 10.0%. Aspirus Health Plan is a new insurer entering the market in 2027, so there are no comparison figures available.

Additionally, UCare's individual plans will no longer be sold starting in 2027. Those who used UCare should pay special attention to the renewal notice.

What puzzled me the most was how different these numbers were from what I had heard during the summer. In August, reports indicated that the increase in the individual market applications was around 10-13%.

At that time, the highest application rate was 13% from Medica, while the others ranged between 10-12%. However, the final announcement showed a rate of 21%.

Initially, I thought the Department of Commerce had raised the rates beyond what was applied for. But upon further investigation, I found no solid evidence to support that conclusion.

The commissioner of the Department of Commerce had previously stated that insurance companies could adjust their application rates during the summer. This meant that the final figures could differ from the initial numbers.

Ultimately, there is a possibility that insurance companies adjusted their rates between the initial applications and final approvals. I couldn't find any official explanation indicating that the Department of Commerce raised the rates directly.

The average numbers themselves also differ. ACASignups' estimate from June calculated a rate of 11.9% based solely on exchange enrollees, while the final 17.7% was recalculated based on all market enrollees.

So, rather than saying that the approvals were higher than the applications, it's significant to note that the criteria for the initial estimates and final calculations were different. This structure makes it easy to misunderstand just by looking at the headlines.

So why are rates increasing in the first place? The Department of Commerce stated that the rising costs of healthcare are the primary reason.

Increases in prescription drug costs, workforce shortages, and higher payments to hospitals were also mentioned. The expiration of the federal enhanced premium tax credits at the end of 2025 has also had an impact.

When tax credits decrease, healthier individuals are more likely to exit the insurance pool. If the remaining enrollees are less healthy, insurers will raise rates further.

There is at least one comforting statistic. They say that without the state's reinsurance program, the average application increase would have been 57.9%.

I was honestly a bit shocked by this number. If one program can create such a difference, I believe such mechanisms must be maintained.

There are about 200,000 enrollees in the individual market. Small group insurance has also increased on average between 10% and 21%, putting more pressure on small businesses.

So what should we do now? First, the open enrollment for 2027 started on November 1, and to be covered starting January 1, you must enroll by December 15.

Don't just rely on automatic renewal; make sure to compare plans from different insurers within the same tier. Depending on where you live, the same plan can have different premiums.

If your income has changed, it's a good idea to recalculate your eligibility for tax credits on MNsure. The average increase doesn't necessarily translate to your bill.

I checked the formulary first since I take medication every month. Before changing plans, be sure to discuss your current medications and treatment plans with your doctor and pharmacist.

The Department of Commerce also explains that the final rates do not necessarily reflect the premiums you will actually pay. The amounts can vary based on plan, location, age, renewal timing, and subsidy eligibility.

You should also consider the hospital network. If you save a little on premiums but lose access to your current hospital, it could end up costing you more.

If I were you, I wouldn't just look at the premiums but would also write down the deductibles and out-of-pocket maximums to compare. When you line up the numbers, the answer often becomes clear quickly.

This year, I plan to finish my comparisons within this week without procrastinating. Don't forget the December 15 deadline, everyone.