LANSING, Mich. (Michigan News Source) — Next January, individual health insurance premiums could climb by nearly 17% and small‑group rates by 11% as carriers file for 2026 hikes with the state’s Department of Insurance and Financial Services.

Blue Cross Blue Shield of Michigan leads the pack, seeking an 18.2% bump for individuals and an 11.2% uptick for small groups—moves the insurer blames on heavier use of medical services and ballooning pharmacy bills, which drove a $1.7 billion underwriting loss in 2024, according to The Detroit News.

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Priority Health isn’t far behind, proposing a 14.4% hike on individual plans and 9.7% on small‑group coverage. The Grand Rapids carrier points to surging demand for new therapies, expanded behavioral‑health use and pricier prescriptions as the culprits, according to the Detroit Free Press.

UnitedHealthcare, though covering fewer Michigan residents, has asked for the steepest individual‑market increase—a 25.3% leap—alongside a 16.0% rise for small‑group offerings.

Meridian Health Plan of Michigan, another major player, is petitioning for a 16.9% jump in its individual market rates—up from its 3.2% request in 2024—though it has yet to elaborate on the sudden escalation.

The rate‑increase requests by Michigan’s insurers are driven in large part by the looming sunset of enhanced Affordable Care Act subsidies, which have propped up premiums since 2021. Authorized under the American Rescue Plan and extended by the Inflation Reduction Act, these enhanced tax credits—expanded to cover households earning over 400% of the federal poverty level—are set to expire on December 31, 2025. 

Meanwhile, the Michigan Department of Insurance and Financial Services is accepting public comments on all proposed rate changes through July 31, 2025.