According to the brief, premium rate changes vary between individual and small group plans within the same geographic area, and there may be variations
between other regions. However, rate changes for 2024 Affordable Care Act (ACA)-compliant health insurance plans are driven by the following:
• Inflation—While health care costs outpace inflation, higher contract reimbursement
rates with providers also pressure premium
rates. These costs have been surpassing
inflation, and renewals of expiring multiyear
contracts setting reimbursement rates are expected to reflect providers’ increased
operational costs.
• COVID-19 public health emergency (PHE)—
Due to the PHE ending, payment
responsibility changes (for COVID-19
vaccines and tests) and potential enrollment
are shifting, possibly leading to carriers
increasing their rates. Furthermore, the
impact of long COVID-19 on medical costs
and premiums is uncertain.
• Coverage shifts—Many small employers are
changing their offered coverage options,
which could result in higher premium rates
in ACA-compliant small group plans. These
