Private health insurance premiums reach a record high of $7,008/year in 2024

With the annual insurance open enrollment just concluded, an analysis from insurance consultancy website ValuePenguin, found that in 2024, Americans will spend a record average $584 per month, or $7,008 per year, on health insurance, if they purchase a private health insurance plan on the marketplace.

After a 0.67 percent increase in 2022 and a 4 percent increase in 2023, American families will face another 4 percent increase in the cost of private health insurance, driven by rising costs for healthcare providers and insurers. Residents of 35 states will likely see their rates increase, but there may be some relief for residents of the 15 states where premiums are set to decrease or stay the same.

Utahns face a 7 percent hike from $558 per month ($6,696 per year) in 2023 to $599 per month ($7,188 per year) in 2024.

Key finding s of the report include:

• Every type of private health plan will see premiums increase in 2024. Platinum and Gold tier plans, along with HMO and PPO plans, will see the largest increase in premiums ranging from 6 percent to 10 percent.
• In 2024, health insurance will cost the most in Alaska, Vermont, West Virginia, New York and Wyoming. Premiums in these states will be 62 percent, 55 percent, 50 percent, 49 percent and 43 percent, respectively, above the national average. New Hampshire, Maryland, Virginia, Minnesota and Indiana will have the cheapest health insurance, with premiums 25 percent to 36 percent below the national average.
• Several states will see insurance rates increase by more than 10 percent. Oregon leads with a 17 percent increase, followed by Massachusetts, South Carolina, Maine, Alaska, Michigan, Illinois, New York, Vermont and California. Alaska’s 15 percent increase in premiums will mean residents will pay $11,376/year ($948/month) for health insurance — the highest in the country.
• The year’s biggest rate decreases will be seen in South Dakota, Arizona, Oklahoma, Wyoming and Missouri. In South Dakota, Arizona and Wyoming, where private health insurance costs are among the most expensive in the country, residents will see their premiums decrease by an average of $924/year, $624/year and $592/year, respectively.

ValuePenguin.com health insurance expert Divya Sangameshwar said, “Amid rising premiums — 57 percent of insured Americans worry about the future of their healthcare. While rising premiums and out of pocket expenses are Americans’ biggest worry, many also worry about the decline in the quality and access to healthcare, and a further 10 percent worry about losing healthcare coverage altogether.”