Healthcare DIVE August 7, 2024
Insurers cited workforce shortages, hospital consolidation and growing demand for pricey GLP-1 drugs as reasons driving the premium increases for 2025.
Dive Brief:
- Premiums for plans sold on the Affordable Care Act exchanges are expected to grow an average of 7% next year, similar to last year’s growth, according to new research from health policy firm the KFF.
- Insurers cited workforce shortages, hospital consolidation and growing demand for pricey GLP-1 drugs as drivers behind growing costs, necessitating the premium hike, according to the KFF’s analysis of rate filings.
- Most enrollees in the ACA markets receive subsidies and won’t feel the full effect of premium increases. However, higher premiums generally result in higher taxpayer spending on subsidies, researchers noted.
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