How to Lower Your Health Insurance Premium in 2027: 11 Moves That Work
Rates are up again and the subsidy that used to absorb increases is smaller. You still have more control over your 2027 price than your renewal letter suggests.
Why your 2027 premium is going up
If your renewal letter made you wince, you are not imagining it. Insurers asked for a median 15% rate increase for 2027 across 276 insurers nationwide, with individual requests running from a small decrease to more than 50%. That lands on top of a 26% average benchmark increase in 2026. In Florida, the 12 insurers that filed asked for increases from about 4% to about 39%, and the state has not finalized them yet.
The bigger change is the subsidy. The enhanced premium tax credits expired on December 31, 2025. The House passed a three-year extension in January 2026, but the Senate has not acted, so for 2027 the original rules apply: the share of income you are expected to pay is higher, and above 400% of the federal poverty level (about $63,840 for a single person or $132,000 for a family of four) there is no credit at all.
The one thing to remember
Your premium is not a fixed price you either accept or cancel. It moves with your income estimate, the plan you choose and how your local benchmark plan moved this year. Most of the savings below come from those three levers, and none of them requires giving up real coverage.
Want to see how big your increase actually is? Our 2027 premium increase calculator compares your renewal number to what a benchmark plan should cost at your income.
11 moves that lower a 2027 premium
1. Do not let your plan auto-renew
If you do nothing, the Marketplace re-enrolls you in the same plan, or the closest match if yours is discontinued. That is convenient and often expensive. Your subsidy is pegged to the second-lowest-cost silver plan in your area, and the benchmark resets every year. When the benchmark gets cheaper relative to your plan, your net premium rises even if your plan's sticker price barely moved. Here is how to read your renewal notice.
2. Update your income estimate before you shop
Your subsidy is calculated on the income you expect for 2027, not what you made last year. If your hours dropped, you changed jobs or your business had a slow year, a lower estimate can mean a much larger credit. Be accurate rather than hopeful: starting with tax year 2026, any excess credit has to be paid back in full at tax time. What counts as income for the subsidy.
3. Lower your MAGI on purpose if you are near the 400% line
The subsidy uses modified adjusted gross income, and you can reduce it legally. Pre-tax contributions to a traditional 401(k) or 403(b), a deductible IRA, a SEP or Solo 401(k) if you are self-employed, and an HSA all count. So does the self-employed health insurance deduction. At $1,000 over the cliff, a $1,500 retirement contribution can restore a credit worth thousands. See the 2027 income limits by household size.
4. Pick the metal tier by total cost, not premium
Compare premium plus what you are likely to spend on care. If your income is under 250% of the poverty level (about $39,900 for one person), silver plans come with cost-sharing reductions that lower the deductible and copays. Those discounts only exist on silver, which is why a silver plan can cost less over the year than a bronze plan with a lower premium. Bronze vs silver vs gold vs platinum.
5. Pair a bronze plan with an HSA
Since 2026, every bronze and catastrophic plan counts as HSA-compatible. For 2027 you can put in up to $4,500 for yourself or $9,000 for a family, plus $1,000 if you are 55 or older. Contributions lower your taxable income and your MAGI, the money rolls over every year, and it pays for qualified care tax-free. For healthy people who can handle a high deductible, this is the cleanest way to cut the total bill.
6. Check whether you qualify for a catastrophic plan
Catastrophic plans have the lowest premiums on the Marketplace. They used to be limited to people under 30. Now anyone whose income makes them ineligible for premium tax credits or cost-sharing reductions, generally income below 100% or above 250% of the poverty level, can request a hardship exemption to buy one. The 2027 rules made that permanent and nationwide. Credits cannot be applied to catastrophic plans, so they make most sense for people who do not get a credit anyway. How catastrophic, bronze and HSA plans compare.
7. Match the network to how you actually use care
PPOs cost more because they cover out-of-network care. If your doctors are local and you rarely travel, an HMO or EPO with your doctors in network is often the same care for less. If you travel for work or split time between states, the PPO premium may be worth it. HMO vs PPO, explained.
8. Price the household together and split
Nobody in a household has to be on the same policy. If one person needs a broad network and the rest need local care, two plans can cost less than one plan that tries to do both. Your subsidy is still based on total household income, so splitting does not hide anything; it just lets each person buy the right plan.
9. Re-check the job-based options in your household
If a spouse's employer offers coverage, compare it again for 2027. Since the family glitch fix, family members are judged against the cost of family coverage, so if the family premium is unaffordable they may qualify for Marketplace credits while the employee stays on the work plan. Small business owners can look at ICHRA or a group plan, which can cover the owner's family for less than individual coverage.
10. Buy dental and vision only if the math works
Adult dental and vision are not part of a medical plan. A standalone plan is worth it if you will actually use it; otherwise it is premium you do not need. Here is the break-even math.
11. Be careful with plans that only look cheaper
Short-term plans, fixed indemnity plans and health care sharing ministries are cheaper because they cover less. Most can turn down pre-existing conditions, cap what they pay, or are not insurance at all, and none of them qualifies for a premium tax credit. They have a place as a bridge, but they are not a cheaper version of the same thing. How the four ways to buy compare.
See your real 2027 number
We compare every plan in your ZIP at your real income and show what a bad year would cost on each. Same prices as HealthCare.gov, free to you.
Get my free 2027 quote →Which moves fit your situation
| If this is you | Start with | Why |
|---|---|---|
| Income under 250% of the poverty level | Moves 1, 2, 4 | Silver with cost-sharing reductions often beats bronze over a full year |
| Income just over 400% of the poverty level | Moves 3, 5 | A retirement or HSA contribution can bring the credit back |
| Well above 400%, healthy | Moves 5, 6, 7 | No credit to protect, so the lowest premium with a tax break wins |
| Self-employed or 1099 | Moves 2, 3 | Net profit, not gross, sets the subsidy |
| Family with mixed needs | Moves 8, 9 | Splitting plans or using a spouse's employer can cut the total |
| Insurer leaving your state | Move 1 | You will be moved to another plan unless you choose one yourself |
The deadline that matters
Open Enrollment for 2027 coverage runs November 1, 2026 to January 15, 2027. Choose a plan by December 15 for coverage that starts January 1. Choose after that and your new plan starts February 1. The full calendar, including state exchanges, is in our Open Enrollment 2027 guide.
If your coverage is ending because your insurer is leaving or you lost Medicaid or job coverage, you may not have to wait for Open Enrollment. Here is what to do if you are losing coverage in 2027.
Sources: KFF analysis of 2027 ACA rate filings (Aug 2026); Florida Office of Insurance Regulation filings as reported by WLRN (Sep 2026); KFF insurer participation tracker for 2027 (Sep 2026); CMS 2027 Notice of Benefit and Payment Parameters; IRS Rev. Proc. 2026-24 and Notice 2026-5; 2026 HHS poverty guidelines. Figures checked 4 October 2026. Rates are proposals until each state finalizes them.
Frequently asked
Why is my health insurance going up so much in 2027?
Two things are stacking. Insurers asked for a median 15% rate increase for 2027 nationally, on top of a 26% average benchmark increase in 2026. And the enhanced premium tax credits that capped what most people paid expired at the end of 2025, so the subsidy that used to absorb those increases is smaller, and above 400% of the poverty level it is gone.
What is the fastest way to lower my health insurance premium?
Shop instead of letting your plan auto-renew, and update your income estimate before you do. Your subsidy is tied to the second-lowest-cost silver plan in your area, and that benchmark changes every year. A plan that was a good deal in 2026 can be one of the more expensive options in 2027 even if its sticker price barely moved.
Can I lower my income to get a bigger ACA subsidy?
You can lower your modified adjusted gross income legally. Pre-tax contributions to a traditional 401(k), a deductible IRA, a SEP or Solo 401(k) if you are self-employed, and an HSA all reduce it, and so does the self-employed health insurance deduction. Near the 400% line, a few thousand dollars of contributions can be worth more in subsidy than they cost. You cannot simply under-report income: since tax year 2026 any excess credit is repaid in full.
Is a bronze plan a good way to save money?
It lowers the premium, and since 2026 every bronze plan is HSA-compatible, which adds a tax break. It is a good fit if you rarely use care and could cover a high deductible in a bad year. If your income is under 250% of the poverty level, compare it against silver first: cost-sharing reductions only apply to silver plans and can make silver the cheaper plan over a full year.
When is the deadline to change plans for 2027?
Open Enrollment runs November 1, 2026 to January 15, 2027 on HealthCare.gov. Pick a plan by December 15 for coverage that starts January 1. Plans picked from December 16 to January 15 start February 1. Some state-run exchanges have different end dates.
Does using a broker cost more?
No. Plan prices are set by the insurer and filed with the state, so the premium is the same whether you enroll on your own, on HealthCare.gov or through a licensed broker. The carrier pays the broker's commission.