An Epic Surge in Health Care Insurance Rates for 2024: What You Need to Know
Introduction
As healthcare costs continue to rise, insurers and states are preparing for potentially epic increases in health insurance rates for 2024. While final rates have yet to be approved, proposals are indicating that the cost hikes will be significantly higher than what was seen in 2023. For individuals with health insurance plans, it is important to stay apprised of the potential increases and be as informed as possible when making decisions in the open enrollment period.
Rate Hike Proposals Present Big Changes
Insurance carriers are proposing average rate increases of 15% on Health Insurance Marketplace plans and 13% for group market plans for 2024. This is a major jump compared to the 2021 rate hikes of 8% for the Health Insurance Marketplace and 4% for group market plans and the rate hikes of 2022 which were still yet to be determined. This means that insurance premiums could be higher than ever for the upcoming year.
Understanding Preparers’ Justifications
The majority of state insurance departments are supporting the primary reason for such a steep rise in rates, noting that the health care expenses incurred during 2020 due to the COVID-19 pandemic were much higher than expected. Increases in turn also reflect a recent surge in medical costs, and insurers have cited that rising costs of hospital services, physician services outcomes, and prescription drugs are a major factor in the rising rates.
Planning Ahead to Combat Higher Costs
Given the increasing likelihood of the proposed rate hikes, it is important to start preparing now in the event that they are approved in the fall. Choosing an affordable healthcare plan during the upcoming open enrollment period is essential for ensuring that individuals still have the coverage they need in the coming year. It is important to start understanding options now and comparing plans in advance in order to make the best decisions when the rates become available.
Conclusion
Rate proposals are indicating that health insurance costs will be higher than ever in 2024. Given the evidence, it is important to start preparing now for the upcoming open enrollment period in order to ensure that individuals can make the best and most affordable decisions when the rates become available.