Health Insurance Premiums to Increase in 2024 - 4 Things to Know

"This is where there's no place for insurers to hide," Lee said. "(COVID-19) is touching every American; it's going to touch every insurer. These costs have to be paid; the question is how are they going to be paid."  Peter Lee, Executive Director of CoveredCA, California's individual exchange.

As Congress and state governments moved to mandate no-cost Coronavirus COVID-19 testing and treatments for Americans, providers and insurers are fighting a new battle: the $103 billion-dollar bill for COVID-19 testing and treatments this year, according to a projection from Covered California's office of an actuary.

According to the same study, commercial insurers like Blue Cross Blue Shield, Aetna, Humana, Cigna, and Oscar Health could increase premiums between 4% to 40% for 2021.  

A Twitter user's Notice of Proposed rate with a 20% increase in premiums for 2021

Why are health insurance carriers increasing premiums for 2021?

There are a few factors at play, but most importantly, the cost of COVID-19 testing and treatments.

Cost of testing: COVID-19 testing varies depending on the type of insurance and the geography, ranging from $61-$240 per patient per test.

Cost of treatments: for those who need hospital care, an episode ranges from $30,000 for Medicare to $72,000 for commercial insurance.

"Plans in 2021 will price not only to cover losses they did not plan for this year but to cover anticipated costs next year," said Peter Lee, executive director of Covered California.