Private Health Insurance Premiums Reach A Record High of $7008/year in 2024

Private health insurance premiums rise for the 3rd year in a row, with thirty-five states experiencing premium hikes, ValuePenguin.com finds.

NEW YORK, Dec. 19, 2023 /PRNewswire/ -- With Open Enrollment underway, a new ValuePenguin.com analysis 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.
• 7.3 Americans have already signed up for private health insurance coverage. According to data from the Centers for Medicare and Medicaid Services, 1,645,931 are signing up for private health insurance for the first time.Private health insurance enrollment for the 2024 plan year is the highest in Florida, Texas, Georgia, California and North Carolina.

ValuePenguin.com health insurance expert Divya Sangameshwar said, "Amid rising premiums - 57% of insured Americans worry about the future of their health care. 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 adds, "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. Americans whose incomes are between 100% - 400% the federal poverty level can qualify for heavily subsidized private health insurance plans, which should be easier on their wallets."

For the full report, please visit: https://www.valuepenguin.com/average-cost-of-health-insurance

About ValuePenguin.com: ValuePenguin.com and its parent company, LendingTree®, have a common mission: to empower consumers with tools, information, and resources to help them make smarter, more informed financial decisions. For more information, please visit www.valuepenguin.com, like our Facebook page or follow us on Twitter @ValuePenguin.

Additional Information:
Health Care Concerns Survey: https://www.valuepenguin.com/health-care-concerns-survey 
Private Health Insurance Subsidy Calculator: https://www.valuepenguin.com/aca-subsidy-calculator 

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SOURCE ValuePenguin