Why Your Health Insurance Premium Went Up This Year

Health insurance premiums climbed this year no matter how you get your coverage—whether through an employer, Medicare, or the Affordable Care Act marketplace. Experts say several overlapping factors are driving the increases.

One major reason: Americans have been visiting doctors more frequently in recent years, partly to catch up on care they put off during the pandemic. That deferred treatment has led to some diseases being diagnosed at later stages, requiring more intensive and costly interventions.

Chronic conditions are also playing a larger role. Rates of cancer, heart disease, and obesity have risen, adding long-term costs to the system. The popularity of new obesity medications has sent pharmaceutical spending sharply higher. According to health policy research group KFF, several insurers on the ACA marketplace cited the cost of these drugs as a direct reason for raising premiums.

It remains unclear how long these cost pressures will persist or whether future premium increases will follow the same trajectory.