Salem residents buying their own health insurance or covered through a small business will still face double-digit premium increases in 2027, but state regulators shaved those hikes down on July 30, projecting $30 million in savings statewide.

Oregon's Division of Financial Regulation cut proposed individual market rate increases from an average of 17.5% to 16% and trimmed small group market increases from 17% to 15.5%, according to KYKN. Some small group insurers saw reductions of up to 8 percent from their original requests.

"Increasing insurance rates are part of the rising cost of living felt by many Oregonians," Oregon Insurance Commissioner TK Keen said in the announcement. "Consequently, I'm proud of the work my dedicated team here at DFR has done to protect Oregonians' pocketbooks by scrutinizing the proposed increases further and appropriately turning the dial downward."

What Salem shoppers will see

Marion County will have four carriers in the individual market for 2027: BridgeSpan, Kaiser, Moda, and Regence, according to the DFR rate table. Their adjusted rate increases range widely. Kaiser's increase dropped to 10.2%, BridgeSpan to 10%, and Regence to 10.5%. Moda's adjusted increase is 23.9%, down from a requested 25%.

The DFR table lists Portland-area benchmarks for a 40-year-old silver plan ranging from $571 per month (Kaiser) to $689 per month (Moda) after adjustments, but Marion County rates vary by plan and age.

Why rates are climbing

Four forces are pushing premiums higher. Congress did not extend enhanced premium tax credits in 2025, credits that had made coverage more affordable for nearly 120,000 Oregonians.

Providence Health Plan and PacificSource both exited Oregon's individual market ahead of 2027, according to Insurance Business, reducing competition. Medical costs continue to rise. And tariffs on durable medical equipment and pharmaceuticals are adding new pressure.

Moda cited rising provider contract costs and worse-than-expected 2025 claims experience in its rate filing, pegging its annualized cost trend at 10.2%, according to a KFF analysis of marketplace filings.

Nationally, the loss of those tax credits led to more than 2 million Americans dropping coverage in 2026 and a 58% average jump in out-of-pocket premiums that year, per KFF.

Oregon's proposed 17.5% individual market increase before DFR's trim exceeded the national median of 14%.

What's keeping rates from going higher

The Oregon Reinsurance Program lowered 2027 rates by an average of 9.7%, marking its ninth consecutive year of reductions. The Legislature adopted Gov. Tina Kotek's 2025-27 funding plan to keep the program stable, and Oregon has resubmitted a federal renewal request to maintain it.

What happens next

DFR will announce final 2027 rate decisions in early September. Consumers shopping for individual market plans can visit oregonhealthcare.gov or call 855-268-3767.