Impending Premium Increases for Health Insurance in 2024

Starting January 1, many U.S. residents purchasing health insurance through federal or state marketplaces will likely encounter increased premium costs. This shift follows the expiration of the additional financial assistance provided during the COVID-19 pandemic, which previously helped reduce premium expenses under the Affordable Care Act.

The conclusion of these subsidies may result in significant premium adjustments, impacting policyholders differently. Some will experience minor increases, while others could face substantial financial challenges. As a result, insurers, including payers and providers, alongside marketplace administrators, must prepare for the implications on enrollment and coverage affordability in the upcoming plan year, while ensuring regulatory compliance requirements are met.