The American Health Insurance Providers (AHIP) Association is committed to ensuring that every American has access to affordable and comprehensive health coverage. With nearly 21 million Americans enrolled in the individual market for the 2023 plan year, it’s crucial to understand the factors that will influence individual market premiums in 2024 and beyond. In this blog post, we’ll delve into some of the key drivers shaping the future of individual market premiums.
Factors Driving Premium Changes in 2024
As we look ahead to 2024, several key factors will influence individual market premiums:
Increasing Provider Costs: The rising cost of medical services provided by doctors and hospitals contributes significantly to premium increases. Healthcare providers are continually faced with growing expenses, and these costs are often passed on to consumers in the form of higher premiums.
Hospital and Provider Consolidation: The ongoing consolidation of hospitals and healthcare providers can limit competition, leading to higher costs for consumers. With fewer options available, insurers may face increased expenses, which can, in turn, lead to higher premiums.
Prescription Drug Costs: The cost of prescription drugs is a significant driver of healthcare spending. As pharmaceutical companies introduce new, often expensive medications, insurance providers may need to adjust premiums to cover these rising costs.
Healthcare Utilization: The demand for healthcare services can vary from year to year, impacting premiums. Increased utilization of healthcare services can put upward pressure on premiums, especially if the healthcare system faces capacity constraints.
Major Policy Changes: Shifts in healthcare policy, such as changes to regulations or mandates, can have a profound impact on premium rates. These changes can create uncertainty in the market and may lead to premium adjustments.
While individual market premium changes will vary depending on local and state dynamics, these factors are expected to play a significant role in influencing premiums across the individual market in 2024.
For More Information
If you’re interested in a deeper dive into the factors influencing individual market premiums in 2024, we invite you to download our comprehensive PDF report. It provides a more detailed analysis of the drivers shaping the future of healthcare premiums.
We’re committed to providing exceptional support, so please don’t hesitate to reach out to our dedicated Total Benefit Solutions health insurance specialists at (215)-355-2121. We’re here to answer any questions or address any concerns you may have.