Health insurance shoppers face new ID checks and higher costs for 2027

Open enrollment for Affordable Care Act health insurance begins November 1 in most states. Shoppers will encounter new identity verification steps, a smaller pool of available brokers, and rising premiums as they seek coverage for 2027.

The Centers for Medicare & Medicaid Services has introduced rules to combat fraud in the federal marketplace, which serves 29 states. Consumers using agents must now obtain a one-time confirmation code via text, email, or phone call to authorize representation. Additional identity checks apply to individuals classified as high-risk, including first-time applicants, those changing states, and people paying monthly premiums of $30 or less. These consumers must verify their identity through third parties like Experian or by uploading documents to healthcare.gov.

Joshua Brooker, an insurance agency owner in Pennsylvania, noted that the new scrutiny targets groups where fraud is common. He warned that up to one in five consumers may face extra proofing steps, which could cause some to abandon the process. Stacey Pogue, a senior research fellow at Georgetown University, said the measures target fraud but might create hurdles for people without established credit files or those who have recently moved.

A separate rule issued in September places a moratorium on brokers new to the marketplace. Agents not registered in 2026 cannot assist with 2027 enrollments until at least February. Jason Fine, a Florida brokerage owner, stated that the move disproportionately hurts small firms that rely on seasonal hiring. He added that larger call centers with year-round staffs are better positioned to fill the gap. The National Association of Benefits and Insurance Professionals filed a lawsuit on October 15, arguing the rule unfairly targets 19,000 new agents.

Premiums are expected to rise by an average of 15% for 2027, down from a 26% increase the previous year. Louise Norris, a health policy analyst, explained that subsidies remain pegged to benchmark plan costs, which helps offset these increases for many shoppers. However, households earning more than four times the federal poverty rate will lose subsidy eligibility entirely. For a single person, that threshold is $63,840.

The One Big Beautiful Bill Act also restricts subsidy eligibility for many lawfully present immigrants. H-1B visa holders, refugees, and those with pending green-card applications are generally excluded. Green-card holders and citizens of specific Pacific Island nations retain access to subsidies. Anne Petry, an insurance owner in Illinois, identified affordability as the primary concern for many clients, predicting a breaking point for some families.

Experts advise consumers to avoid automatic plan renewals and instead compare options manually. Deductibles and out-of-pocket maximums are also increasing, with the individual cap rising 13% to $12,000 in 2027. Several major insurers have reduced their market presence, meaning plan availability varies by region.