Rising costs for healthcare providers and insurers drive prices up
By Abigail Adriatico
Dec 20, 2023 Share
Private health insurance premiums saw a rise for the third consecutive year as 35 states experienced premium hikes according to an analysis by ValuePenguin.
The report found that Americans will be spending $584 per month in 2024 on health insurance if they purchase a private plan on the marketplace, amounting to $7,008 per year. This is a 4% increase.
“Amid rising premiums, 57% of insured Americans worry about the future of their health care,” said Divya Sangameshwar, a health insurance expert from ValuePenguin.
“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,” she added.
Increases in premiums brought by rising costs
The report also found that residents of 35 states were likely to see their rates increase while residents from 15 states may see their premiums either decrease or stay the same. The largest increases will be felt by platinum and gold tier plans along with HMO and PPO plans, ranging from 6% to 10%.
Alaska, Vermont, West Virginia, New York, and Wyoming will face the highest costs as premiums will be 62%, 55%, 50%, 49%, and 43% higher than the national average, respectively. Alaska will bear the highest premiums in the country with an annual payment of $11,376.
By contrast, New Hampshire, Maryland, Virginia, Minnesota, and Indiana will have the cheapest with premiums ranging from 25-36% below the national average.
Insurance rates, meanwhile, will increase by more than 10% in Oregon, Massachusetts, South Carolina, Maine, Alaska, Michigan, Illinois, New York, Vermont, and California.
“Even if you are worried about affording health insurance, having health insurance is better than going uninsured. Choosing a plan that’s right for you at a price point you can afford will give you the peace of mind that you have some financial protection against unexpected medical expenses,” said Sangameshwar.
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