Average annual health insurance premiums in 2024 are $8,435 for single coverage and $23,968 for family coverage. These average premiums each increased 7% in 2023. The average family premium has increased 22% since 2018 and 47% since 2013, according to Beinsure Media health insurance market trends report.
More than 3.6 mn new consumers entering the health insurance market are choosing among an average of 88 plans.
This review includes several insights into the individual market for 2024 that are relevant to stakeholders, including insurers, providers, private equity firms, policy analysts, and consumers.
States may begin Medicaid redeterminations as early as April 2023, potentially disenrolling 2.7 million people and making them eligible for individual market premium subsidies.
Insurer participation rose for the fifth year in a row in 2023, reaching 303 insurers at the state level, close to the 2015 peak of 306. In 2023, 27 new insurers entered the market (+9%), compared to 48 in 2022 and 35 in 2021. However, 20 insurers exited (-7%), resulting in a net increase of six insurers (+2%) in 2023, lower than the 11-16% increases seen in the previous four years.
Consumer participation increased to over 16 million in 2022 ahead of the 2023 open enrollment period. Blues enrolled 42% of members in 2022, down 18 points from 2014. Insurtechs enrolled 14%, up 12 points since 2019.
Despite their recent growth, insurtechs saw a decline in 2023, with Bright Health leaving the market and Friday Health Plan pausing in some states. By 2023, 59% of consumers had access to a national insurer plan, up from 47% in 2022. Blues (98%) and Medicaid (76%) insurers still cover the most consumers nationally. Other insurer categories saw stagnant or modest growth, with national insurers leading the increase.
Strong earnings in early 2022 were offset by significant unrealized losses affecting capital and surplus, negating about one-third of underwriting gains. With rising interest rates, unrealized losses are expected to increase in 2023. Additionally, the end of the PHE and Medicaid redetermination will negatively impact Medicaid results next year.
Average annual health insurance premiums in 2023 are $8,435 for single coverage and $23,968 for family coverage. These average premiums each increased 7% in 2023.
- The average premium for single coverage in 2023 is $8,435 per year. The average premium for family coverage is $23,968 per year.
- The average annual premium for single coverage for covered workers at small firms ($8,722) is higher than the average premium for covered workers at large firms ($8,321). The average annual premium for family coverage for covered workers at small firms ($23,621) is similar to the average premium for covered workers at large firms ($24,104).
- The average annual premiums for covered workers in HDHP/SOs are lower than the average premiums for coverage overall for both single coverage ($7,753 vs. $8,435) and family coverage ($22,344 vs. $23,968). The average premiums for covered workers in PPOs are higher than the overall average premiums for both single coverage ($8,906 vs. $8,435) and family coverage ($25,228 vs. $23,968).
- The average premium for covered workers with single coverage is relatively higher in the Northeast and relatively lower in the South. The average premium for covered workers with family coverage is relatively higher in the Northeast and relatively lower in the West.
- The average family premium for covered workers at firms with a relatively large share of lower-wage workers (firms where at least 35% of the workers earn $31,000 annually or less) is lower than the average premium for covered workers at firms with smaller shares of lower-wage workers for family coverage ($21,902 vs. $24,151).
- 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 ($8,790 vs. $8,112) and for family coverage ($24,700 vs. $23,304).
With the goal of simplifying the shopping experience for consumers, CMS included regulations as part of the HHS Notice of Benefit and Payment Parameters for 2024 proposed rule that would limit insurers in FFM states to offering two nonstandardized plans per product network type and metal tier.
McKinsey estimate that if this rule had been in effect for plan year 2023, the average number of plan options available to FFM consumers would be 34% lower overall, with a 45% reduction in nonstandardized plan options.
