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Prescription Drug Costs, Hospital Consolidation Among Driving Factors Influencing 2024 Individual Market Premiums

Press Release

AHIP released a new issue brief highlighting factors influencing 2024 individual market premiums.

Published Sep 28, 2023 • by AHIP

WASHINGTON, D.C. – (September 28, 2023) – Every American deserves access to affordable, high-quality coverage and care. Today, AHIP released a new issue brief highlighting factors influencing 2024 individual market premiums, including rising prescription drug costs, continued hospital and provider consolidation, policy changes, and increased health care utilization.

“Every day, the individual market protects the health and financial security of millions of Americans by offering affordable choices and comprehensive coverage,” said Jeanette Thornton, AHIP Executive Vice President of Policy and Strategy. “Pressures like increasing drug costs, provider consolidation, inflation, and major policy changes are expected to drive market rates up in 2024. However, enhanced premium tax credits—extended by Congress through 2025—mean more Americans can enroll in coverage through the marketplaces.”

Nearly 21 million Americans are covered by the individual market for plan year 2023. The Affordable Care Act’s marketplaces have continued to stabilize and grow, with a record-high of 16.3 million Americans enrolled.

The issue brief also notes how the end of the COVID-19 Public Health Emergency, and the restarting of Medicaid redeterminations may affect premiums.

“An estimated 8 to 24 million Americans could lose access to Medicaid as a result of redeterminations, with as many as one-third of those being eligible for coverage through the health insurance marketplaces,” Thornton continued. “That’s why health insurance providers are working hard to ensure that people get the coverage they need.”

Click here to view the AHIP issue brief on 2024 Individual Market Premiums.

Click here to view more AHIP Individual Market resources.

About AHIP

AHIP is the national association whose members provide health care coverage, services, and solutions to hundreds of millions of Americans every day. We are committed to market-based solutions and public-private partnerships that make health care better and coverage more affordable and accessible for everyone. Visit www.ahip.org to learn how working together, we are Guiding Greater Health.