Health insurance regulators in Delaware and New Mexico have approved significant rate increases for individual market plans in 2025. The hikes, ranging from 25% to 35%, reflect the impact of federal policy changes and rising medical costs.
According to a report from AM Best, these higher premiums are expected to add financial strain on both consumers and insurers. In Delaware, the Department of Insurance approved rates for 40 marketplace plans. Highmark plans will increase by 25%, while AmeriHealth Caritas plans will rise by 34.89%.
Regulators pointed to federal budget changes, adjustments to marketplace rules, and the expiration of enhanced premium tax credits at the end of the year as key reasons for the hikes.
The increases aren’t limited to the individual market. Highmark requested a 22.73% rise for off-market small group plans, while UnitedHealthcare proposed a 30.33% hike. Insurance Commissioner Trinidad Navarro highlighted that marketplace enrollment has doubled since 2020, fostering competition and better benefits.
However, Navarro warned that ongoing “significant federal turmoil” could lead to reduced enrollment in 2026.
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