Private Health Insurance Premiums to Reach Record High in 2024

On Dec 20, 2023

Americans will spend a record $584 per month, or a total of $7,008 in 2024 on health insurance, if they purchase a private health insurance plan on the marketplace, according to a new ValuePenguin.com analysis.

After a 0.67% increase in 2022, and a 4% increase in 2023, American families will face another 4% 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.

1. Every type of private health plan will see premiums increase in 2024. Platinum & Gold tier plans, along with HMO & PPO plans, will see the largest increase in premiums ranging from 6% to 10%.
2. In 2024, health insurance will cost the most in Alaska, Vermont, West Virginia, New York and Wyoming. Premiums in these states will be 62%, 55%, 50%, 49% and 43% above the national average. New Hampshire, Maryland, Virginia, Minnesota and Indiana will have the cheapest health insurance with premiums 25% – 36% below the national average.
3. Several states will see insurance rates increase by more than 10%. Oregon leads with a 17% increase, followed by Massachusetts, South Carolina, Maine, Alaska, Michigan, Illinois, New York, Vermont and California. Alaska’s 15% increase in premiums will mean residents will pay $11,376/year ($948/month) for health insurance – the highest in the country.
4. 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.
5. 7.3 Americans have already signed up for private health insurance coverage. According to data from the Centers for Medicare and Medicaid Services, 1,645,931 are signing up for private health insurance for the first time. Private health insurance enrollment for the 2024 plan year is the highest in Florida, Texas, Georgia, California and North Carolina.

ValuePenguin.com health insurance expert Divya Sangameshwar said, “Amid rising premiums – 57% 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% worry about losing healthcare coverage altogether.”

She added, “Even if you are worried about affording health insurance, having health insurance is better than going uninsured. Choosing a plan that’s right for you at a price point you can afford will give you the peace of mind that you have some financial protection against unexpected medical expenses. Americans whose incomes are between 100% – 400% the federal poverty level can qualify for heavily subsidized private health insurance plans, which should be easier on their wallets.”

The Average Cost of Health Insurance in 2024
State	2024 cost	2023 cost	% change
Alaska	$948	$822	15 %
Vermont	$908	$810	12 %
West Virginia	$877	$871	1 %
New York	$873	$776	13 %
Wyoming	$838	$882	-5 %
South Dakota	$715	$792	-10 %
Nebraska	$691	$652	6 %
Louisiana	$666	$652	2 %
Connecticut	$665	$614	8 %
Massachusetts	$639	$553	16 %
North Carolina	$638	$666	-4 %
Illinois	$633	$561	13 %
Florida	$613	$599	2 %
Kansas	$602	$565	7 %
California	$600	$541	11 %
Utah	$599	$558	7 %
Oklahoma	$596	$634	-6 %
Missouri	$594	$626	-5 %
Texas	$584	$589	-1 %
Alabama	$584	$591	-1 %
National	$584	$560	4 %
Wisconsin	$583	$550	6 %
Maine	$582	$506	15 %
Oregon	$578	$493	17 %
New Mexico	$577	$551	5 %
Pennsylvania	$576	$532	8 %
Montana	$568	$519	9 %
Delaware	$567	$566	0 %
Nevada	$566	$575	-2 %
Tennessee	$558	$533	5 %
New Jersey	$550	$535	3 %
North Dakota	$548	$538	2 %
Iowa	$548	$552	-1 %
South Carolina	$541	$469	15 %
Colorado	$535	$489	9 %
Ohio	$535	$513	4 %
Arizona	$517	$569	-9 %
Mississippi	$511	$499	2 %
Georgia	$509	$474	7 %
Washington	$503	$470	7 %
Michigan	$497	$435	14 %
Kentucky	$497	$479	4 %
Hawaii	$490	$482	2 %
Idaho	$473	$483	-2 %
Arkansas	$461	$456	1 %
Rhode Island	$455	$424	7 %
Indiana	$436	$425	3 %
Minnesota	$423	$404	5 %
Virginia	$409	$425	-4 %
Maryland	$384	$385	0 %
New Hampshire	$373	$372	0 %

For the full report, please visit: https://www.valuepenguin.com/average-cost-of-health-insurance

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