Analysis Health insurance premiums are rising .
but why is there little attention? What’s happening?
Health insurance premiums in the United States have been rising rapidly lately — reflected in both employer-handed plans and the ACA (Affordable Care Act).
The cost of employer-patronized health insurance quadrupled from 1999 to 2024, and increased by 6% from 2023 to 2024 alone. In 2015, KFF reports that annual premiums for employer-patronized family health content reached $25,572 — up 7% from the previous year.
Premiums in the ACA marketplace are also scheduled to rise by 2026 — in some areas, like New York, they are proposed to reach 66.4%, in Colorado 33%, and the public average is about 20%. When did this trend start? This increase has been going on for a long time but has recently accelerated. For example, the cost of Employer plans quadrupled from 1999 to 2024. Employer-patronized content increased by 7% in 2023-24. The ACA’s currently proposed rates for 2026 will be perfected in summer 2025. Why are premiums rising?
Analysis Health insurance premiums are rising
Several reasons are leading to this increase:
1. Worsening cost of health care – The cost of hospitals, doctors, injections, medical equipment is rising rapidly.
2. The demand and cost of precious treatments – such as GLS-1 drugs and generic therapies – is pushing premiums up.
3. End of subsidies – The end of enhanced civil duty credits received after COVID-19 is increasing costs for many households, which may actually lead to a huge increase in out-of-fund expenses.
4. Adverse selection – Healthy people drop out when premiums are high, making insurance for the remaining people more expensive.
5. Market connection – The increasing dominance of a few large insurers is reducing competition, which is driving up prices. How is it affecting people? Prices for families are skyrocketing – A family has to spend more than $35,000 annually under plant insurance – this is almost three times more than 20 years ago.
The share of workers has also increased – In 2024, workers have to donate up to $6,296 per year for family insurance. Impact on small businesses – In small establishments (lower than 50 workers), the employer spends $528.84 per month for a single employee and $1,232.59 for a family employee till December 2024.
Deductibles are also rising – a typical ACA tableware plan’s deductible reaches nearly $5,000 in 2025. Where is it visible? Employer-Sponsored Market (workplace insurance) – This is the biggest segment, where the increase is happening consistently. ACA Marketplace (Individual & Small Group Plans) – Premiums in these plans are rising rapidly. This increase is different in different states and is affecting a lot. Small enterprises – Where the premium share has increased on average and transaction capabilities are less. — Simple Summary (for Visitor) Health insurance is no longer golden — premiums and deductibles are constantly rising.
The impact of increased expenses is being felt most by families, workers, and small businesses. There are many deep reasons behind this — such as rising cost of health care, expensive treatments, ending of subsidies, unbalanced economy, and less competition. If you’re in the US and healthcare costs are bothering you, consider new plans, subsidized options, or intermediate cost-sharing options.
