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Private Health Insurance Premiums Reach Record High for 2024

Insurance Forums Staff

With Open Enrollment underway, a new ValuePenguin.com analysis released Dec. 19 has found that in 2024, Americans will spend a record $584 per month, or $7,008 per year on health insurance, if they purchase a private Health Insurance plan on the marketplace.

After a 0.67% increase in 2022, and a 4% increase in 2023, American families will face another 4% increase in the cost of private health insurance, driven by rising costs for healthcare providers and insurers. Residents of 35 states will likely see their rates increase, but there may be some relief for residents of the 15 states where premiums are set to decrease or stay the same.

Every type of private health plan will see premiums increase in 2024. Platinum & Gold tier plans, along with HMO & PPO plans, will see the largest increase in premiums ranging from 6% to 10%.

In 2024, health insurance will cost the most in Alaska, Vermont, West Virginia, New York and Wyoming. Premiums in these states will be 62%, 55%, 50%, 49% and 43% above the national average. New Hampshire, Maryland, Virginia, Minnesota and Indiana will have the cheapest health insurance with premiums 25%-36% below the national average.

Several states will see insurance rates increase by more than 10%. Oregon leads with a 17% increase, followed by Massachusetts, South Carolina, Maine, Alaska, Michigan, Illinois, New York, Vermont and California. Alaska’s 15% increase in premiums will mean residents will pay $11,376/year ($948/month) for health insurance – the highest in the country.

The year’s biggest rate decreases will be seen in South Dakota, Arizona, Oklahoma, Wyoming and Missouri. In South Dakota, Arizona and Wyoming, where private health insurance costs are among the most expensive in the country, residents will see their premiums decrease by an average of $924/year, $624/year and $592/year, respectively.

Private health insurance enrollment for the 2024 plan year is the highest in Florida, Texas, Georgia, California and North Carolina.

“Amid rising premiums, 57% of insured Americans worry about the future of their health care,” said ValuePenguin.com health insurance expert Divya Sangameshwar. “While rising premiums and out-of-pocket expenses are Americans’ biggest worry, many also worry about the decline in the quality and access to healthcare, and a further 10% worry about losing healthcare coverage altogether.”

Sangameshwar noted that Americans whose incomes are between 100%-400% the federal poverty level can qualify for heavily subsidized private health insurance plans.

HealthCare.gov enrollment tops 15 million

The Biden-Harris Administration announced Dec. 20 that ACA Marketplace enrollment continues at a record-breaking pace.

As of December 15, 2023, for HealthCare.gov states and December 9, 2023, for State-based Marketplaces, preliminary data projects that over 19 million consumers will enroll in 2024 coverage through the ACA Marketplaces, which is over 7 million more than when President Biden took office.

This includes 15.3 million individuals who have selected a health plan using the HealthCare.gov platform. On December 15 alone, the deadline for coverage starting January 1, 2024, more than 745,000 people selected a Marketplace plan through HealthCare.gov—the largest single day in history.

“Millions of Americans signing up for health care coverage under the Affordable Care Act is good news. It means more Americans have the peace of mind of knowing that going to the doctor won’t empty their bank account,” said Secretary Xavier Becerra. “The Biden-Harris Administration will continue working to expand health care coverage and lower prescription drug costs, so taking care of your health is not a luxury.”

“More than 15.3 million people have signed up for Health Insurance Marketplace plans in states that use HealthCare.gov, an impressive 33% increase compared to this time last year,” Administrator Chiquita Brooks-LaSure said. “The Marketplace clearly meets an important need in Americans’ lives, making access to health care possible for adults and their children. We look forward to continuing to get people enrolled ahead of the January 16 deadline.”

Because of continuing provisions in the Inflation Reduction Act, CMS expects nine out of 10 customers to be eligible for savings. People with current coverage through HealthCare.gov are encouraged to return and shop to see if another plan better meets their needs at a lower cost.

Many people are eligible for Medicaid and the Children’s Health Insurance Program (CHIP). However, those who are no longer eligible for Medicaid or CHIP should visit HealthCare.gov to see if they are eligible to enroll.

CMS added that individuals will also benefit from a highly competitive Marketplace. More than 90% of HealthCare.gov enrollees will be able to choose among three or more plans.

The Marketplace Open Enrollment Period on HealthCare.gov generally runs from November 1 to January 15. In 2024, January 15 is a federal holiday; accordingly, consumers will have until midnight Tuesday, January 16 (5 a.m. EST on January 17) to enroll in coverage. Consumers who enroll before the January 16 deadline will have coverage that starts February 1, 2024.




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