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ACA Premiums Are Expected to Increase in 2024 Due to Rising Health Care Costs
Health care insurers are proposing a median 6% increase for Affordable Care Act (ACA) health plan premiums in 2024, according to a Kaiser Family Foundation (KFF) report. Rising prices for health care services and medications are a key driver for the proposed increase in 2024 ACA Marketplace premiums. While medical inflation tends to lag behind the rest of the economy due to the nature of provider contracts, it appears that inflation is starting to impact the prices of health care services, causing them to increase. As a result, many insurers expect inflation to place upward pressure on health care premiums as well as administrative costs.
Most enrollees in [the ACA] market are subsidized and do not pay the full premium. However, premium increases can affect federal spending, and the driving factors behind these increases illustrate broader trends driving health care costs in 2024. |
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KFF Report |
The report also mentioned other factors affecting 2024 ACA premiums, including the following:
The current rate requests by insurers are preliminary and may change during the review process before being finalized later this year. However, the KFF report highlights how affordability and rising health care costs will continue to be top challenges for insurers for the foreseeable future. By taking note and monitoring current ACA Marketplace premium trends, employers can help their employees better understand their Marketplace coverage choices.
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The content of this News Brief is of general interest and is not intended to apply to specific circumstances. It should not be regarded as legal advice and not be relied upon as such. In relation to any particular problem which they may have, readers are advised to seek specific advice.
Marty Thomas
Marty has spent most of the last 20 years developing software in the marketing space and creating pathways for software systems to talk to each other with high efficiency. He heads our digital marketing efforts as well as oversees any technology implementations for our clients. As a partner, Marty is also responsible for internal systems in which help our team communicates with each other and our clients.