For the fourth consecutive year, health care costs and insurance premiums are on the rise. Private plans bought through the Affordable Care Act (ACA) marketplace can expect an average 7% increase in 2025, with some states facing much higher rate hikes. The total cost of private health benefit costs per employee is projected to rise by 5.8%.
Several factors contribute to rising health care costs, including inflation, increased prescription drug prices, and hospital consolidation. However, there are steps individuals can take to manage their health insurance costs or improve their coverage.
Subsidies on the ACA marketplace can help reduce premium costs for eligible individuals, with over 90% of enrollees qualifying for subsidies. High deductible health plans (HDHP) tend to have lower premium prices but may require higher out-of-pocket expenses. Consider opening a health savings account (HSA) or flexible spending accounts to save on taxes and medical expenses.
Sticking to a budget and prioritizing preventive care can also help control health care costs. Annual wellness visits with your doctor can identify potential health issues early on, reducing the need for more expensive treatments later.
As the new year begins, it’s essential to monitor health care costs and evaluate coverage options during each annual enrollment season to avoid being caught off-guard by rising costs or plan changes.
Source: https://www.investors.com/etfs-and-funds/personal-finance/health-care-costs-rise-again-how-to-budget-for-2025-increases