Major Arkansas Health Insurers Seek 26.2% Rate Hikes on Individual Plans: What You Need to Know

Health insurance premiums in Arkansas could rise by an average of 26.2% in 2026, based on proposed rates from insurers submitted to the Arkansas Insurance Department. This change would impact approximately 227,000 individuals covered by the state’s Medicaid expansion program, ARHOME, and around 166,000 others enrolled through healthcare.gov.

ARHOME provides health coverage for low-income residents using both state and federal funds. Insurers must justify their proposed rate increases to ensure that they are sustainable according to guidelines set by the American Academy of Actuaries.

Insurance Commissioner Alan McClain must approve these rates before they take effect on January 1. Open enrollment for healthcare.gov plans starts on November 1.

These potential changes are viewed as historically significant. Just last year, premiums rose by an average of 6.2%, the largest increase in five years. The proposed hikes this time vary significantly—Centene plans are expected to increase by 20.1%, while Arkansas Blue Cross and Blue Shield plans could soar by 34.3%.

According to a blog by the Arkansas Center for Health Improvement, insurers attribute these significant increases primarily to recent policy shifts. The expiration of enhanced premium tax credits, part of the American Rescue Plan Act, is a major factor. These credits helped amplify enrollment, which has more than doubled in just a few years, from about 66,000 in 2021 to over 166,000 this year.

Without these tax credits, families could see their monthly payments rise dramatically. For instance, a typical Arkansas family of four might jump from $75 to $257 for a “silver plan,” which generally covers 70% of medical expenses.

Insurers, like Centene, speculate that the end of these credits could lead to higher rates due to decreased enrollment. They warn that healthier people might leave the marketplace for more affordable options, which would worsen the average health status of remaining enrollees. Similarly, Arkansas Blue Cross and Blue Shield cited potential work requirements under Medicaid expansion as another reason for their proposed increases.

Interestingly, Arkansas isn’t alone in facing these challenges. Nationally, an analysis by KFF indicated that many states are seeing double-digit premium increases. The average proposed hike across 105 marketplace insurers is around 15%, significantly higher than in previous years.

These adjustments raise important questions about the future of health coverage. As premiums rise, the balance between affordability and access may become increasingly strained for many families.

For more detailed information on premium adjustments nationwide, check sources like the Kaiser Family Foundation.

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