Health Insurance Premium Increase 2024: Strategies for Savings

Health insurance premium increases can be a significant burden, but there are strategies to help you save. Many individuals will face a 7-10% increase in their health insurance premiums in 2024.

To navigate these rising costs, it's essential to understand the factors contributing to the increase. According to recent data, the average health insurance premium is expected to rise by 8.5% in 2024, with some plans increasing by as much as 12%.

A key factor in these increases is the rising cost of healthcare services. In 2023, the average healthcare cost per capita was $11,072, a 4.6% increase from the previous year.

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The health insurance premium increase in 2024 is a significant concern for many Americans. According to data, the average health insurance premium is expected to rise by 5-7% next year.

This increase is largely due to rising healthcare costs, which have been steadily increasing over the past few years. Many people are feeling the pinch of these rising costs.

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For individuals with employer-sponsored health insurance, the average premium increase is expected to be around 4-6%. This may not seem like a lot, but it can add up over time.

Some of the most affected by the premium increase will be those who purchase individual health insurance plans. These plans are often more expensive than group plans, and the premium increase will be felt more sharply.

The premium increase will also vary depending on the state and the specific health insurance plan.

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Health insurance premium increases can be attributed to several factors.

Medical inflation is a significant contributor, with healthcare costs rising by 10% in the past year alone. This has led to higher claims payouts for insurance companies, resulting in increased premiums for consumers.

Regulatory changes, such as the Affordable Care Act, have also driven up premium costs, with some plans seeing increases of up to 20%.

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The individual market is a crucial aspect of New York's healthcare landscape, and it's essential to understand how it works. Over 248,000 New Yorkers are currently enrolled in individual commercial plans.

Last year, more than 60% of individuals who enrolled in a Qualified Health Plan through New York State of Health received federal premium tax credits to lower the costs of premiums. This is a significant benefit for many consumers.

The average rate increase requested by insurers was 20.9%, but the Department of Financial Services (DFS) cut this by 36% to 13.5% for 2024, saving consumers $145 Million. This reduction will have a substantial impact on the affordability of health insurance for many New Yorkers.

Here's a breakdown of the rate actions for each company:

As of 2023, more than one million New Yorkers are enrolled in the Essential Plan, which charges no premium for lower-income individuals who qualify.

Price inflation in health insurance premiums varies significantly by state due to differences in service usage, hospital stay costs, prescription medication prices, and provider competition.

In Vermont, only two health insurance companies sell Marketplace plans, limiting competition and contributing to high premiums.

The state's regulations also play a role in premium prices. For example, Vermont's law limiting insurance companies' authority regarding prior authorization, claims, and medication step therapy may lead to higher prices.

A state's Medicaid policies can impact ACA premiums, as Oregon's Medicaid expansion program led to some individuals no longer needing to pay for insurance on the state marketplace.

This resulted in a 12% increase in Oregon's bronze plan premiums, which are projected to cost $408 monthly in 2025.

In contrast, Idaho's average percent of enrollees in a bronze plan is much higher than national and regional benchmarks, making competition for bronze plans more fierce.

As a result, Idaho's bronze premiums will decrease by 5% and cost an average of $307 monthly in 2025.

Here's a comparison of the two states:

Most large employers don't cover the cost of expensive weight loss drugs such as Wegovy.

Among companies with 200 or more employees that do not cover GLP-1 agonists, primarily those used for weight loss, 62% said they are "not likely" to pay for the drugs next year.

Companies that do cover weight loss drugs often impose requirements, such as visiting a dietitian, psychologist, case worker or therapist to get a prescription.

The high list price of these drugs, sometimes costing more than $10,000 a year, combined with the number of projected users, was too much to sustain for North Carolina state officials.

The state would have had to raise premiums to nearly $50 a month for about 750,000 employees and their dependents covered by the state health plan to continue affording coverage.

More than 23,000 people on North Carolina's health plan were using these prescription drugs for weight loss, costing the state more than $800 per member per month, on average, after rebates.

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Vermont's insurance market is limited by having only two health insurance companies sell Marketplace plans, which contributes to high premiums.

In contrast, Idaho has a more competitive market, with a higher percentage of enrollees in bronze plans, leading to lower premiums.

A state's Medicaid policies can impact ACA premiums, as seen in Oregon, where a Medicaid expansion program led to some individuals no longer needing to pay for insurance on the state marketplace.

This resulted in insurance companies increasing the cost of their bronze plans by almost 12% in Oregon.

The average monthly cost of bronze plans in Oregon is projected to be $408 in 2025.

In Idaho, the average monthly cost of bronze plans is expected to decrease by 5% and cost an average of $307 in 2025.

Insurance companies in Oregon had to make actuarial adjustments to account for the decrease in the number of individuals needing coverage, which increased the cost of their bronze plans.

This highlights the importance of considering a state's Medicaid policies when evaluating ACA premiums.

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In 2025, premiums for plans on the Health Insurance Marketplace are expected to rise in most states, with some seeing increases as high as 35%.

Premiums are actually decreasing in a handful of states, including Louisiana, Iowa, Alabama, Oklahoma, Missouri, and South Carolina.

Nationwide, premiums for the lowest-cost silver plans are rising 4% on average.

The five states with the highest-cost silver plans are Vermont, Alaska, West Virginia, Wyoming, and New York.

Here are the highest and lowest average premiums per metal level across the U.S.:

The least expensive states for health insurance premiums are New Hampshire, Minnesota, Maryland, Virginia, and Indiana.

If you're worried about the upcoming health insurance premium increase in 2024, don't worry, there are ways to reduce your costs dramatically.

You can apply for subsidies to lower your costs, and in Vermont, for example, those using federal subsidies pay only $243 for their premiums.

Reporting your income and other information when you enroll in coverage can also help you qualify for premium tax credits, which lower how much you have to pay for Obamacare premiums.

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Four in five 2025 Obamacare enrollees should be able to find coverage for $10 a month or less after subsidies.

Some states have their own subsidies, so be sure to check with your state health insurance marketplace if you have one.

According to the Center on Budget and Policy Priorities, premiums will rise sharply across all states for all ages and income levels in 2026 if the Inflation Reduction Act tax credit enhancements expire in late 2025 as scheduled.

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