Cost of Healthcare Insurance by Commercial and Government

Healthcare is expensive as it is. You have copays, etc. to shell out money for when required. It becomes even more expensive if you do not have healthcare insurance of some type. Even if you have healthcare insurance, it may not cover everything. The plus side of the insurance being, you will pay the negotiated rate of what is left over. Even the weakest policy can give you that advantage.

What I am looking at today is the future cost of healthcare insurance as depicted and described in this commentary by Kaiser Family Foundation (KFF). This news is just days old and too soon for me to dissect and report on yet.

An analysis of insurers’ initial rate filings for the 2026 Affordable Care Act Marketplace plans has been submitted. In all 50 states and DC, the median proposed increase for 2026 is 18%. The proposed increase is, more than double last year’s proposed increase. If there is no relief, more people will be going without healthcare insurance.

Below is a report on the healthcare insurance costs for 2024. You can get a feel for what is going to occur in 2026 if the increase is approved.

“2024 Employer Health Benefits Survey Section 1:” Cost of Health Insurance – 10480 | KFF

“The core of the problem lies in the difference between what private, commercial health plans pay for services and what public programs such as Medicare pay. It is a well-documented fact . . . prices and not an increase in the quantity of care people use, are the primary driver of spending growth for the 165 million Americans with employer-sponsored insurance.

On average, US hospitals charge privately insured patients nearly 2.5 times what Medicare pays for the exact same service. This is not a simple market variation; it is a systemic issue with devastating consequences. The true burden of these aberrantly high prices is not ultimately borne by insurance companies or even by employers. Instead, it is systematically passed through to workers via a series of damaging, indirect mechanisms. Beyond The Bill: The Hidden Economic Toll of High Commercial Provider Prices,” Health Affairs.

October 2024 KFF, The average annual health insurance premiums in 2024 are $8,951 for single coverage and $25,572 for family coverage. The average single coverage premium increased 6% in 2024 while the average family premium increased 7%. The average family premium has increased 24% since 2019 and 52% since 2014. KFF has an online tool which allows users to look at changes in premiums and worker contributions for covered workers at different types of firms over time.

Premiums for Single and Family Coverage

• The average premium for single coverage in 2024 is $8,951 per year. The average premium for family coverage is $25,572 per year [Figure 1.1].
  • The average annual premiums for single coverage are similar for covered workers at small firms ($9,131) and at large firms ($8,884) [Figure 1.3].
  • The average annual premiums for family coverage are similar for covered workers at small firms ($25,167) and at large firms ($25,719) [Figure 1.3].

• The average annual premiums for covered workers in HDHP/SOs are lower than the average premiums for coverage overall for both single coverage ($8,275 vs. $8,951) and family coverage ($24,196 vs. $25,572). The average premiums for covered workers in PPOs are higher than the overall average premiums for both single coverage ($9,383 vs. $8,951) and family coverage ($26,678 vs. $25,572) [Figure 1.1].

• The average premium for covered workers with both single and family coverage is relatively higher in the Northeast and relatively lower in the South [Figure 1.4].

• The average premiums for covered workers at firms with a relatively large share of older workers (firms where at least 35% of the workers are age 50 or older) are higher than the average premium for covered workers at firms with smaller shares of older workers for single coverage ($9,171 vs. $8,738) [Figure 1.6].

• The average premiums for single coverage and family coverage are lower for covered workers at private for-profit firms and higher for covered workers at private not-for profit firms [Figure 1.6] and [Figure 1.7].

Premium Distribution

• There is considerable variation in premiums for both single and family coverage.
  • Fifteen percent of covered workers are employed at a firm where the single coverage premium is at least 20% higher than the average single premium, while 19% of covered workers are at firms with a single premium less than 80% of the average single premium [Figure 1.9].
  • For family coverage, 17% of covered workers are employed at a firm with a family premium at least 20% higher than the average family premium, while 20% of covered workers are at firms with a family premium less than 80% of the average family premium [Figure 1.9].

• Seven percent of covered workers are at a firm with an average annual premium of at least $12,500 for single coverage [Figure 1.10]. Ten percent of covered workers are at a firm with an average annual premium of at least $33,000 for family coverage [Figure 1.11].

Section 1: Cost of Health Insurance – 10480 | KFF

I will post on Premium Changes Over Time tomorrow as taken from KFF.