As the new year comes, many Americans are asking: how much will my health insurance cost in 2024? With healthcare costs going up and the economy still uncertain, it’s key to know the latest trends. Are you ready to handle the changing insurance world and find coverage that fits your budget? Discover the important insights to help you plan and choose the right health insurance for the next year.

Key Takeaways

• Median proposed premium increase for 2024 across insurers is 6%, with most changes falling between 2% and 10%.
• Broader economic inflation and medical trend are driving up healthcare costs, putting upward pressure on premiums.
• Unwinding of Medicaid continuous enrollment may impact the ACA marketplace and premium costs.
• Strategies for employers to control costs include narrow provider networks and centers of excellence programs.
• Employees face rising out-of-pocket expenses through higher deductibles and copays.

Overview of Health Insurance Premium Increases

The cost of health insurance premiums is a big worry for many people and companies. Recent studies show the median proposed premium increase for 2024 is 6%. Some insurers plan to lower premiums by up to 15%, while others might raise them by as much as 100%.

Most proposed changes are between 2-10%. But, 41 insurers want to lower premiums, and 76 insurers want to increase them more than 10%. These changes will be reviewed and approved later, with final 2024 rates set in late summer.

Median Proposed Premium Increase of 6%

For the 320 insurers in the ACA Marketplace across the U.S., the median proposed premium increase is 6% for next year. This gives us a good idea of the trend in insurance premiums and premium changes in the ACA Marketplace.

Range of Premium Changes Across Insurers

The proposed rate increases vary widely, from a 15% decrease to a 100% increase. This shows how complex and diverse the health insurance market is. Insurers have different situations and pricing plans.

“The cost of medical care benefits in the U.S. is projected to increase by about 8.9% in 2024, compared to 8.2% in 2023.”

Drivers of Premium Increases in 2024

Planning for healthcare costs in 2024? It’s key to know what’s pushing up premiums. Medical inflation is a big factor, with insurers seeing costs for services and meds go up by about 8%. Most are in the 7-9% range.

But it’s not just medical costs. Economic inflation is also making premiums rise. It affects both healthcare provider costs and insurer admin costs. PwC’s Health Research Institute says medical costs could jump by 8% in 2025 for groups and 7.5% for individuals, thanks to inflation.

Medical Inflation and Healthcare Prices

Medical trend, or the growth in what insurers pay for services and meds, is a big reason for higher premiums in 2024. The demand for certain drugs and mental health services is also driving costs up.

Impact of Broader Economic Inflation

It’s not just healthcare prices going up. Broader economic inflation is also pushing premiums higher. This is making healthcare providers look for ways to make more money and recover costs through health plans. For example, hospital costs went up by 6.3% in late 2023 compared to the same time the year before.

Medical inflation and economic factors are making healthcare costs go up in 2024. Employers and employees will need to find ways to manage these costs better.

COVID-19 and the End of the Public Health Emergency

As the COVID-19 pandemic changes, insurers are watching how it affects their costs and rates for 2024. The public health emergency (PHE) is ending, but we don’t know how the pandemic will keep affecting us.

Changes in COVID-19 Testing and Vaccine Costs

Insurers think their pandemic-related costs will go down in 2024 when the PHE ends. They expect to start charging for COVID-19 tests again, which were free before. But, they might pay more for each COVID-19 vaccine dose since it’s now sold commercially.

Even with these changes, insurers believe premiums won’t go up much. They think people will use COVID-19 tests and vaccines less as the pandemic gets better. This will help balance out the higher costs from selling the vaccine.

The public health emergency is ending, but insurers are still watching the COVID-19 situation closely. They’re ready to handle changes in testing costs and vaccine costs.

Unwinding of Medicaid Continuous Enrollment

As the COVID-19 public health emergency ends, Medicaid coverage changes are coming. Between 8 million and 24 million people might lose their Medicaid. This could mean an 8% to 28% drop in Medicaid enrollment.

During the emergency, Medicaid saw a big jump, adding nearly 23.3 million people to nearly 95 million by March 2023. But, growth is slowing down. It’s expected to drop by 8.6% in 2024 as the changes start.

It’s hard to predict how this will affect healthcare. Some think more people might sign up for ACA Marketplace plans. But, it’s unclear how this will change health conditions and premiums. Insurers haven’t yet changed their rates because of the uncertainty.

Some states are trying to help by keeping Medicaid open longer. By May 2023, 30 states had made plans to keep Medicaid open. These plans were due to the CMS by February 15, 2023.

This change is complex and will need careful watching. State and federal agencies, healthcare providers, and insurers must work together. They aim to make the transition smooth and keep healthcare coverage for millions of Americans.

“The unwinding of the Medicaid continuous enrollment provision is expected to have a significant impact on healthcare coverage in the United States, with estimates indicating that between 8 million and 24 million people could lose their Medicaid coverage during this transition period.”

Health Insurance Costs in 2024: What to Expect and How to Budget

As 2024 approaches, it’s key to know what health insurance costs might look like and how to plan for them. We’ve learned about the main reasons premiums are going up and how this affects what you pay out-of-pocket.

The average monthly cost for an individual on an Affordable Care Act (ACA) plan without tax credits is expected to be $477 in 2024. But remember, costs can change a lot based on your age, where you live, and the plan you pick.

Here are some tips to help you plan your budget:

1. Look at the different premiums from various insurers and plan types. For instance, Bronze plans are the cheapest at $417 a month for a 40-year-old. Platinum plans cost the most at $763 a month.
2. Keep up with how the American Rescue Plan affects health insurance. It helps those with higher incomes by limiting how much they pay for insurance to 8.5% of their income.
3. Think about what health care you need and pick a plan that fits your budget and covers your needs. A 40-year-old with a Silver plan pays an average of $539 a month, but this can change a lot by state.
4. Check out what employers are doing to keep costs down, like using narrow networks or centers of excellence. These might help lower what you pay out-of-pocket.

Planning for health insurance costs is key to keeping your finances healthy. By staying updated and using smart budgeting, you can make sure you get the coverage you need affordably in 2024 and the years after.

“Budgeting for health insurance costs is a crucial aspect of maintaining your overall financial well-being.”

Employer Strategies to Control Health Care Costs

Health insurance premiums keep going up, so employers are finding ways to handle their healthcare costs. One way they’re doing this is by using narrow provider networks. These networks limit the healthcare providers employees can see but often have lower costs.

About one-quarter of employers are thinking about or already planning to use narrow networks in the next two years.

Another strategy employers are looking at is centers of excellence programs. These programs focus on giving top-quality, cost-effective care for big medical issues like cancer, heart disease, or broken bones. Almost one in five employers are looking into these programs to cut down on healthcare costs.

By using these new employer strategies, companies can handle health care costs better. They also offer their workers quality, affordable healthcare choices. As healthcare changes, employers need to keep finding new ways to manage their budgets. They must make sure their workers get the care they need.

Impact on Employees and Out-of-Pocket Costs

Many employees feel the effects of higher healthcare costs through more expensive premium increases and cost-sharing. This year, the average cost for a family plan is $6,575, and $1,400 for single coverage. Even though employer costs went up 4.5% from last year, employee premiums only rose 1.7%. But, out-of-pocket costs went up 5.7%, making the total increase 3.3%.

Premium Increases and Cost-Sharing

Premiums for employer-sponsored family coverage have increased by 20% over the past five years and by 43% over the past ten years. Employers expect a 6.6% increase in health benefits costs in 2024. Healthcare costs are also expected to rise by 7% next year. This means more premium increases and cost-sharing for employees.

• High-deductible health plans (HDHPs) have lower premiums but higher deductibles, leading to higher out-of-pocket costs for employees.
• Wellness programs can help reduce medical expenses and promote a healthy lifestyle, potentially easing the cost-sharing burden for employees.

Employers must balance keeping coverage affordable for their workers with managing their own costs. Employees should learn about their plan options and use wellness programs to lower their out-of-pocket costs.

Mental Health Care Benefits and Employer Priorities

Many employers are focusing on improving mental health care benefits. They want to make sure their workers have good access to mental health services and are doing well. About two-thirds of employers plan to work with health plans and other vendors to expand mental health provider networks by 2024. This is up from less than half last year. Also, 44% of employers will offer mental health navigation programs to help workers find the right care.

Employers are realizing how crucial mental health benefits are for their workers’ wellbeing and productivity. By making it easier to get mental health care and offering help in finding it, employers show they care about their workers’ health and happiness.

These efforts show employers are serious about their workers’ mental health and wellbeing. By investing in these programs, employers help their workers and also attract top talent. People want employers that care about their health and wellness.

Case Study: Technology Container Corp.

Technology Container Corp., a maker of plastic reusable boxes, is changing its health insurance for 2024. They want to tackle rising health insurance program costs and offer better benefits administration. They might join a professional employer group to manage their benefits administration. This move could lower premiums and cut down on staff.

The company, with 35 employees, might switch from self-insured to fully insured. This could mean a small rise in what employees pay but lower out-of-pocket costs for healthcare. This employer case study shows how small and medium businesses deal with the changing healthcare scene. They’re finding ways to manage health insurance program costs.

“We’ve seen our health insurance premiums jump by double digits over the past few years, and it’s putting a real strain on our bottom line,” said the company’s HR manager, Sarah Wilson. “By joining a PEO, we can leverage their buying power and expertise to get better rates and streamline our benefits administration.”

Technology Container Corp. is looking to improve its mental health benefits too. They know mental health is key to employee well-being. They’re thinking about adding more providers and a mental health program to help employees get the care they need.

This employer case study shows how small and medium businesses are tackling healthcare complexities. They’re using new solutions and partnerships to keep costs down. At the same time, they ensure their workers have good health insurance program and benefits administration.

Case Study: Whirley DrinkWorks!

Whirley DrinkWorks! is preparing for 2024 with a 3% increase in health insurance premiums. This change affects both the company and its nearly 400 employees. It’s the biggest hike since 2018. To help, Whirley DrinkWorks! is finding ways to keep costs down for its team.

Several factors are causing the rise in health insurance costs. These include more employees needing medical care, delayed elective surgeries, and expensive medications for some workers. To help, the company is keeping the annual deductible at $300. They’re also offering big discounts on premiums for those who join wellness programs.

• Whirley DrinkWorks! faces a 3% increase in health insurance premiums for 2024
• The increase is the largest since 2018, driven by more employees needing care and some elective surgeries
• To keep costs low, the company is maintaining a $300 annual deductible and offering premium discounts for wellness program participation

By actively managing health insurance costs and supporting wellness programs, Whirley DrinkWorks! shows its dedication to its employees. This is especially true when facing rising health insurance costs.

Prescription Drug Costs and Specialty Drugs

Health insurers are seeing a big jump in prescription drug costs. They expect a 9.8% increase in 2024, up from 9.3% last year. This rise is mainly due to more people using specialty drugs and new medications like GLP-1 for weight loss.

Starting in 2024, Medicare Part D and Medicare Advantage plans won’t have deductibles or cost-sharing for certain vaccines. Also, insulin costs under Medicare will be capped at $35 a month. This applies to people with Medicare insurance, including those covered by Part D and Part B.

Medicare Part D will also set a $3,300 cap on out-of-pocket costs for all drugs starting January 1, 2024. Those eligible for Extra Help won’t pay deductibles or premiums for Part D plans. They’ll have a capped amount for drugs and won’t face a late enrollment penalty.

Starting in 2025, Medicare Part D will limit out-of-pocket costs for prescription drugs to $2,000 a year. This will help the 1.4 million Medicare Part D users without subsidies who spent over $2,000 on drugs in 2020.

These changes in Medicare’s drug coverage and costs will help many seniors and people with disabilities. But, the high costs of specialty drugs and new medications like GLP-1 are still a worry for insurers and those on plans.

Employer Strategies to Manage Rising Costs

Employers face high healthcare cost increases and must act fast. They should review their benefits and look for new ways to keep costs down. This includes checking out cost-containment measures.

Some good ideas are using narrow provider networks and centers of excellence programs. These help employees find quality, affordable healthcare. Adding telehealth and well-being services can also help keep costs down by keeping employees healthy and productive.

It’s important for employers to know what’s driving costs in their company. By looking at their data, they can make plans that really help their workers. This way, they can meet the specific needs of their team.

• Implement narrow provider networks to guide employees to affordable, quality healthcare.
• Check out centers of excellence programs for specialized, coordinated care for complex health issues.
• Use telehealth and well-being services to help employees stay healthy and productive.
• Look at your data to find out what’s really costing you and adjust your plans accordingly.

By tackling healthcare costs with these new strategies, companies can keep costs under control. At the same time, they support their employees’ health and productivity.

Conclusion

Health insurance costs are expected to go up in 2024, posing big challenges for employers and individuals. Knowing what drives these increases, like medical inflation and economic factors, helps in planning for healthcare costs. This knowledge lets you make smart choices about your health expenses.

Employers can help control health insurance costs by creating new benefit plans and finding ways to save money. They should also focus on improving mental health care and other support programs for employees. As health care changes, it’s key to have a good plan for managing costs and making sure employees get good care.

Staying up-to-date with health insurance trends and tackling the rising costs head-on is crucial. This way, you and your employees can get the care and coverage you need. Being proactive helps you deal with the healthcare system’s complexities.