It’s the part of the discussion that always comes up no matter where you are. The part of our lives that we deal with daily doesn’t seem to have a better change than what we expect– the cost of living. To say things are continuing to rise in cost might even be an understatement. Between the price of fuel, rent, groceries, and so on, we’re stuck with paying these higher costs. Which brings up the main point-why is health insurance costing so much. Let’s get into it.

In 2021, the Government came up with something called The Enhanced Tax Credit. To put it bluntly, the amount that each household received as their advanced premium tax credit was raised so that a household could afford better coverage. The benefits were tremendous, less cost per month for good or great coverage. In 2025 the United States government terminated those enhanced tax credits which then changed the federal poverty levels that would then qualify for the tax credit. Even those in the 400% FPL were qualifying for even a little bit of tax credit which could still save some money throughout the year. If you combine that change with insurance plans going up in total premium each year, the numbers could only increase. Hence why looking at your renewal rate for the last couple of years has given the clutch your chest and drop the notice with your jaw dropped to the floor effect.

You might be thinking to yourself, “okay, so they removed higher tax credits, but that can’t all account for amount of premium I’m paying year after year since the change.” You’re exactly right! There are many variables that are going into the change, and the weight (pun intended) variables share the increase in cost. O o o Ozempic! We’ve all heard the stories, seen loved ones lose weight and where the health benefits are increasing, it costs money to produce those drugs and with the cost of production, comes the cost to the consumer. Adding weight-loss medication and the more people wanting to add it to their daily regiment adds to the cost of health care. Everything comes at a price as they say.

It’s easy to point out the most recent changes, but when you look at the big picture from a corporation standpoint, you’ll notice a lot of the smaller hospitals are slowly disappearing, and bigger names are entering the story. With those purchases there will be more negotiation that these bigger boards can become a part of, which just means the cost of care must go up to be able to afford treatment. Now let’s combine a lot of variables into a couple of explanations. Picture this; you’re a college student, you need to pay for books, fees, rent for your apartment, and you’re probably working a part-time job. Guess what? You’ve got to add some version of protection over yourself and that protection is named: Health Insurance. Perfect, let’s check out some quotes, enter my household size, and WOAH! That’s the price?! The younger, healthier groups of people are taking the chance and going without insurance. How does that affect you? If you take out the healthy portion of the insured, now the only people to cover are the ones with insurance who are sick, requiring treatment, and someone must pay for that treatment. If the pool of insured is paying premium, but not using their coverage, an insurance company is saving money by not having to pay those claims. The unhealthier the pool of insured, the higher the next year’s premiums are going to be. Now combine that with 60% of Americans having some form of chronic illness, the equation itself leads to some form of health insurance premium disaster.

I’m an insurance agent, am I encouraging people to go without coverage just because it costs so much each year? Absolutely not. The horror stories I have heard from clients that went without insurance would bring you to your knees. I would much rather a client had a $10,000 out of pocket maximum rather than paying the full cost of treatment. Look at it this way, the average cost for an emergency room visit is $1,500 to $3,000. Let’s say that it’s not just some stitches that need to be done, you need a deeper dive into what the issue is. Now you’re adding in one or more specialist appointments, MRI’s (average cost of $1,325 in the United States), surgery, physical therapy, and the list goes on. Within one month of medical bills, you could be looking at a medical bill of half a million dollars in your best scenario. If you’re concerned about the cost of living, imagine getting a medical bill with six figures as the final bill.

The cost of health insurance continues to grow, but what can you do? Find your options, see what your needs are, understand that based on your income you can qualify for cost-sharing that can benefit you on a silver plan. Make sure you know your options when it comes to employer-sponsored health insurance. Research networks and ask your insurance agent which plan will benefit you and those you want to protect. An out-of-pocket maximum is a number you can plan around. A $500,000 medical bill could change your life. Don’t leave your health or your financial future to chance. Know your options and choose coverage that fits your needs.