Cigna Is Leaving Arizona’s Health Insurance Market and the Six Carriers Staying Are Asking for 25% to 34% More
Arizona's six remaining ACA marketplace insurers requested rate increases of 25% to 34% for 2027, citing rising medical costs and a sicker risk pool. Cigna is exiting the state's market, affecting 2,500 enrollees. The increases follow the expiration of federal subsidies, leading to higher premiums and reduced enrollment. Final rates are pending regulatory review and will be published by October 31, 2026.
How this was made
The 30-second read
Why it matters
Higher rates could strain enrollment, increase uninsured rates, and affect insurer profitability across the state.
Market read
The filings signal a steep cost environment for ACA insurers in Arizona, with potential ripple effects on enrollment and profitability.
What to watch
Potential policy changes or new subsidy proposals could mitigate the impact of these rate increases.
Background
Arizona's ACA marketplace is adjusting to the end of enhanced premium tax credits, prompting insurers to request large rate increases for 2027.
Market effects
Indicates rising cost pressure across the ACA individual market, potentially boosting premium revenues for insurers but worsening risk pools.
Arizona's health insurance market faces steep premium hikes, likely reducing enrollment and increasing uninsured rates.
Highlights broader U.S. ACA market stress post‑subsidy expiration, relevant for national health‑insurance stocks.
Counterpoint
Rate hikes may actually accelerate enrollment loss, hurting insurers more than the premium uplift suggests.
Key entities
- companyCigna
Exiting Arizona ACA market
- companyOscar Health
Filed 33.9% rate increase
- companyUnitedHealthcare
Filed 28.63% rate increase
- companyElevance Health
BCBS of Arizona filed 29.59% increase
- companyCentene
Health Net subsidiary filed 28% increase
