Despite Inflation, Health Insurance Costs will Stay Roughly the Same in 2022

Rhea-AI Summary

ValuePenguin.com reports that in 2022, Americans will spend an average of $541 monthly on health insurance via ACA plans, totaling $6,492 annually. Premiums saw a modest increase of 0.67% year-over-year. States like West Virginia and South Dakota will experience the highest premiums, while Georgia and New Hampshire will enjoy the lowest. Platinum tier plans dropped by 4.35% in premiums, while Bronze plans increased, highlighting diverse market changes influenced by healthcare costs and COVID-19 impacts.

Positive

• Overall health insurance cost increases remain minimal at 0.67%.
• Lower premium rates in states like Georgia and New Hampshire could attract consumers.

Negative

• Premiums in states like West Virginia and South Dakota significantly exceed the national average, raising affordability concerns.
• Concerns over increased healthcare costs and COVID-19 impacts may influence future premium rates.

NEW YORK, Nov. 22, 2021 /PRNewswire/ -- A new ValuePenguin.com analysis has found that in 2022, Americans will spend an average of $541 per month, or $6,492 per year on health insurance if they get an Affordable Care Act (ACA) plan via state or federal health exchanges. Health Insurance costs have remained mostly steady - with just a 0.67% ($48/year) increase in average premiums from 2021, but analysts found significant variations across states, and health insurance plan type:

• West Virginia, South Dakota, Wyoming, Vermont and Louisiana residents will pay the highest health insurance premiums in 2022 — premiums here are 53.72%, 50.02%, 41.32%, 40.58% and 34.67% above the national average.
• Georgia, New Hampshire, Maryland, Minnesota and Colorado residents will pay the lowest health insurance premiums in 2022 — premiums here are 42.84%, 33.41%, 32.48%, 28.05% and 24.34% below the national average.
• South Dakota, West Virginia, New Mexico, Arizona and Texas will experience the biggest jump in health insurance costs in 2022 —  marketplace plans here are 23.07%, 19.74%, 17.36%, 13.81% and 12.97% more expensive in 2022 when compared to 2021.
• Georgia, South Carolina and Nebraska will see health insurance costs decrease the most in 2022 — marketplace plans here are 41.37%, 16.15%, and 11.27% cheaper in 2022 when compared to 2021.
• Platinum tier health insurance plans saw the biggest drop in premiums for 2022, compared to other types of plans, falling 4.35%. Expanded Bronze and Bronze tier health plans saw the sharpest increase in premiums, rising 3.21% and 2.47% in 2022.

According to ValuePenguin Health Insurance expert Robin Townsend,"Nationally, the cost of full-price Affordable Care Act (ACA) plans rose by less than 1% for 2022. For states with larger rate increases, insurers cite an overall jump in health care costs, including prescription drug prices, as drivers." She adds, "Other factors mentioned by insurers include the ongoing COVID-19 pandemic, with an increase in vaccine administration and the impact of the delta variant prompting higher rates in 2022."

ValuePenguin analysts looked at the thousands of Health Insurance plans available from the Centers for Medicare & Medicaid Services. Using the rates and premiums for each plan, average costs per state were calculated from silver plans for 40-year-olds. Plans and providers for which county-level data was included in the CMS' Crosswalk file were used in this analysis - those excluded from this dataset may not appear.

To find out how much health insurance will cost in your state in 2022, visit: https://www.valuepenguin.com/average-cost-of-health-insurance

About ValuePenguin.com: ValuePenguin.com, part of LendingTree (NASDAQ: TREE), is a personal finance website that conducts in-depth research and provides objective analysis to help guide consumers to the best financial decisions. ValuePenguin focuses on value, assessing whether the return of a particular decision is worth the cost or risk of that option, and how this stacks up with the other possible choices they may have. For more information, please visit www.valuepenguin.com, like our Facebook page or follow us on Twitter @ValuePenguin. 

Additional Information on Affordable Care Act (ACA) Health Plans: https://www.valuepenguin.com/health-insurance

Media Contact:
Divya Sangam (Ms.)
646 693 8445
Divya@lendingtreenews.com

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SOURCE ValuePenguin.com

FAQ

What is the average health insurance cost in 2022 according to TREE?

In 2022, the average health insurance cost for Americans is $541 per month, or $6,492 annually.

Which states have the highest health insurance premiums in 2022?

West Virginia, South Dakota, Wyoming, Vermont, and Louisiana have the highest premiums, exceeding the national average by up to 53.72%.

What factors contributed to health insurance cost increases in 2022?

Insurers cited rising overall healthcare costs, including prescription drugs, and the ongoing impacts of COVID-19 as contributing factors.

Which health insurance plan type saw the largest premium drop in 2022?

Platinum tier health insurance plans experienced the largest decrease in premiums, dropping by 4.35%.

How have health insurance costs changed in Georgia for 2022?

Georgia residents will see a significant decrease in health insurance costs, with premiums 41.37% lower compared to 2021.