Rise in health insurance premiums in 2022 due to increase usage

Health insurance rates are rising to match the increase in usage, the Associated Press reports. 

Health insurance premiums across 13 states and Washington, D.C will see a rate increase by an average of 10% next year. 

Larry Levitt, executive vice president for health policy at the Kaiser Family Foundation says that the rise in rates is due to the increase in healthcare use among those who delayed treatment during the pandemic as well as inflation throughout the economy. 

Preventative Services Delayed During the Pandemic

According to a study published in the American Journal of Managed Care in October 2020, “screenings for breast, colon, prostate, and lung cancers were lower by 85%, 75%, 74%, and 56%, respectively” during the pandemic. 

In April of 2020, the Centers for Medicare and Medicaid Services (CMS) published a document titled “Non-Emergent, Elective Medical Services, and Treatment Recommendations,” which included recommendations on preventative services during the pandemic. They recommended that “non-essential” services such as routine primary or specialty care and Preventive care visits/screening be postponed due to COVID-19 cases. 

The American Rescue Plan will Expire in December 2022

The rates increase also comes at a time when federal assistance will expire at the end of 2022. The American Rescue Plan, passed by Congress in 2021, offered financial assistance for insurance premiums to individuals with incomes around $52,000 and $106,000 for a family of four. About 14 million Americans receive their health insurance from state marketplaces, that is subsidized by the federal government. 

The relief is set to expire at the end of 2022, which may lead to a significant rise in insurance premiums, according to US Department of Health and Human Services.