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American Academy of Actuaries Releases Issue Brief on Drivers of 2024 Health Insurance Premium Changes
On July 19, 2023, the American Academy of Actuaries (AAA) released its issue brief, Drivers of 2024 Health Insurance Premium Changes. The brief examines factors that may affect the composition of health care prices, health care utilization and health insurance risk pools, which may affect health spending projections and premiums for 2024.
The key findings include:
- Inflation and other factors are projected to increase negotiated provider payment rates and premiums;
- Changing the payment responsibility for COVID-19 vaccines and tests from the federal government to insurance carriers may increase premiums, which may potentially be offset by reduced carrier coverage of at-home tests; and
- Premium changes will reflect the dynamics of the local market and will vary by carrier and geographic area.
In addition, the brief indicated that, “Although Medicaid eligibility redeterminations due to the end of the COVID-19 public health emergency (PHE) will likely result in an increase in individual health insurance market enrollment, the impact on the risk pool and premiums is uncertain.”
The issue brief is available here.