Increase in Prices: Why Americans Need to Be Concerned, More Than Ever

In a troubling development, the escalating costs of health insurance are becoming increasingly unaffordable for millions of Americans. According to recent projections, about 16 million people are expected to lose their insurance coverage by 2034.

The rising costs of health insurance are comparable to a hypothetical 20% increase in rent or mortgage payments for tens of millions of Americans. This stark comparison underscores the significant financial burden that increased health insurance premiums pose.

The average deductible for a standard ACA silver plan in 2025 was nearly $5,000, more than double the amount in 2014. This trend has continued, with rates for many people with ACA insurance likely rising even more drastically.

The increase in health insurance premiums is not limited to the ACA marketplace. From 2023 to 2024, employer-sponsored health insurance rose more than 6% for both individual and family coverage. Over the past two decades, these premiums have more than quadrupled.

This escalation in costs is not keeping pace with wage growth or overall inflation. In fact, the increases are steeper than both, making health insurance an ever more burdensome expense for many families.

Healthcare costs have grown cumulatively 50% since 2017, according to the Business Group on Health. New tariffs on America's trading partners are expected to further push up the cost of drugs and medical supplies, exacerbating the problem.

State regulators scrutinize insurers' proposed rate increases, but only if they exceed 15%. However, some insurers have proposed eye-popping new prices for 2026. UnitedHealthcare, for instance, has proposed a 66.4% rise in New York, while HMO Colorado has asked for an average increase of over 33%. The average proposed increase in Washington is 21.2%.

Some states are trying to address this issue by offering a state-run "public option." However, these efforts have been met with challenges, as a lower payment rate for workers often means fewer participating providers and reduced access to care.

Reductions in healthcare spending included in the GOP budget bill, along with the expiration of some Biden-era premium subsidies at the end of this year, will likely cause many people to lose their health insurance. In Rhode Island, the average proposed increase across all insurers is 23.7%.

Insurance regulators have the theoretical ability to demand that proposed rates be lowered, but the effectiveness of this approach varies from state to state. The escalating costs of health insurance continue to pose a significant challenge for millions of Americans, threatening their financial stability and overall well-being.