New analysis of new cost-sharing subsidies for the Affordable Care Act shows that the average cost of a health plan has risen by more than half in five years, according to an analysis by the Kaiser Family Foundation.
In 2020, the average premium for an employer-sponsored plan rose from $1,079 to $2,862.
In 2022, it rose to $3,942, and in 2023 it rose by $2.34 per person.
The increases were a sharp reversal from the prior years.
Since 2010, premiums for plans that had not gone up by more that 50 percent had been rising at an average annual rate of about 6 percent per year.
The report also found that the annual growth in the premium for plans purchased with tax credits or subsidies was almost twice as large for employer-based plans.
“This means that employers are paying more in health care costs than they would have been had the ACA not been enacted,” said Dr. Thomas McDaniel, an associate professor of health policy at the University of Massachusetts, Amherst, and co-author of the analysis.
“While many people will continue to use these subsidies to purchase coverage, employers will pay a higher price.”
Employers paying more Premiums on average rose by more on average than in the past four years.
Premiums rose by an average of 8.5 percent in 2020, 8.3 percent in 2022 and 8.6 percent in 2021.
For 2018, premiums rose by 3.9 percent, 3.6 the previous year.
For 2020, premiums increased by 4.5% and increased by 6.6% for 2022 and 2021, respectively.
The premium for employer plans purchased on the individual market increased by an estimated 6.3% in 2020.
The increase for 2018 was 2.8%.
Employers purchasing insurance on the exchanges increased their premiums by about 6.2 percent.
Premium increases for 2017 were 8.2% for employer coverage and 5.6%.
The average annual increase in premium costs was 9.3%, and the average annual premium for 2018 exceeded $5,000 for a family of four.
“The ACA is working to provide affordable health coverage to all Americans and has helped millions of Americans gain health insurance,” said Health and Human Services Secretary Kathleen Sebelius.
“With this report, we are showing that despite the progress made, the law is still far from meeting its goal of universal coverage and coverage at affordable prices for everyone.”
The report was based on data from the Health Insurance Marketplace (HI) in 2019, the Federal Employees Health Benefits Program (FEHB), the Federal Insurance Office (FOO), the Department of Labor, and the Centers for Medicare & Medicaid Services (CMS).
The authors did not examine individual market premiums.
The Kaiser Family Report, released today, was written by Dr. McDaniel and Dr. Robert Katz, the dean of Harvard’s T.H. Chan School of Public Health and coauthor of “Insurance Under the Affordable,” a book that analyzed how the ACA was working in terms of its impact on health insurance.
The study was funded by the Henry J. Kaiser Family Foundations.