Montanans who buy individual health insurance through the federal Marketplace are facing potential double-digit rate hikes in 2026. On August 1, federal health officials disclosed preliminary proposals from Montana insurers prepping for changes in the Affordable Care Act Marketplace. Blue Cross Blue Shield of Montana requests a 28% rate increase, while Mountain Health Cooperative seeks a 25% hike.
According to a July analysis by the Peterson Center on Healthcare and KFF, insurers in 19 states and the District of Columbia are requesting a median premium increase of 15%. However, for Blue Cross Blue Shield of Montana, the state’s largest insurer, rate changes vary by plan. The Blue Preferred plan could rise by 23% and the Blue Focus plan by 33%. The company cites expected rises in medical and drug costs as reasons for these changes.
The rate change proposals reflect anticipated medical service and prescription drug cost increases, including provider reimbursement rate adjustments and the integration of new technologies. Meanwhile, the company had previously secured only a 5% average rate increase for 2025.
Researchers attribute the 2026 rate hikes to federal policy shifts and Marketplace uncertainties. With pandemic-era premium tax credits expiring by year-end, insurance costs could surge by 75% on average. Such increases might lead many to discontinue their Marketplace plans, though individuals with serious health conditions may remain insured, potentially driving up costs for insurers.
Blue Cross Blue Shield spokesperson Bryan Campen emphasized that the anticipated end of federal subsidies informed their 2026 rates. “Rate filings for 2026 assume enhanced federal premium tax credits will expire at the end of 2025 per [Centers for Medicaid & Medicare Services]. Plans are priced to reflect anticipated health care needs,” Campen stated. The company remains committed to offering stable and competitive plan choices.
Olivia Riutta from the Montana Primary Care Association advises consumers to adjust their plans in response to the changing landscape. “With proposed rate increases and reduced tax credits, many Montanans will see higher health insurance costs as Open Enrollment begins on November 1,” Riutta noted.
David Sanders, from the Montana State Auditor’s Office, confirmed that the rate hikes are preliminary estimates. The office aims to review the proposed changes by August 13, ensuring insurance remains affordable. Consumers can submit comments on the rate review process to the state auditor’s office at csi.rates@mt.gov.
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