Montana Health Insurers Plan Major Rate Hike for 2026: What It Means for You

Montanans buying individual health insurance through the federal Marketplace may face significant cost increases in 2026. Blue Cross Blue Shield of Montana is seeking an average rate hike of 28%, while Mountain Health Cooperative proposes a 25% rise in rates.

According to preliminary data from federal health officials on August 1, these proposals hint at changes in the Marketplace, influenced by various factors. Earlier this summer, insurers in multiple states sought an average premium increase of 15%, as reported by the Peterson Center on Healthcare and KFF.

For Blue Cross Blue Shield of Montana, the impact will vary by plan. For example, the Blue Preferred plan might rise by about 23%, while the Blue Focus plan could increase by 33%. These changes stem from expected hikes in medical and drug costs. The company indicated that these increases reflect rising healthcare needs and the introduction of new services and technologies.

Historically, Blue Cross Blue Shield requested a modest 5% increase for 2025. Experts believe the proposed hikes for 2026 are partly due to uncertainty in federal policies regarding the Affordable Care Act. Enhanced premium tax credits that helped keep plans affordable during the pandemic are set to expire by the end of this year. Without continued support, estimates suggest insurance costs could rise by an average of 75% for consumers, potentially leading many to drop their plans.

Olivia Riutta, director of population health at the Montana Primary Care Association, encourages consumers to reassess their options as Open Enrollment begins on November 1. With reduced tax credits and rising rates, it’s crucial to stay informed and choose plans that fit individual needs and budgets.

David Sanders from the Montana State Auditor’s Office stresses the importance of keeping insurance accessible and affordable. He highlights that higher costs could create significant issues for consumers. The office is actively reviewing the proposed rate changes and aims to complete this by August 13.

As health insurance evolves, it’s essential for Montanans to understand their options. Whether it’s by adjusting current plans or exploring new ones, informed choices can help navigate these changes effectively.

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Affordable Care Act,Blue Cross Blue Shield of Montana,Montana Primary Care Alliance,Montana State Auditor’s Office,Mountain Health Cooperative