Families across the U.S. are facing unprecedented financial pressure as the average cost of an annual health insurance premium skyrockets to $25,572 in 2024—a staggering 7% increase from last year. This surge comes at a time when wage growth has lagged at just 4.5%, while inflation holds at 3.2%, amplifying the economic strain on households already grappling with rising costs. The widening gap between healthcare costs and wage increases only underscores the growing burden on American families.
One of the most pressing concerns is the potential expiration of subsidies that currently help lower-income families afford health insurance. If these subsidies are not renewed, the financial consequences could be devastating. For example, a 55-year-old woman who currently pays $96 a month for health insurance may see her costs skyrocket by 186%, placing essential healthcare out of reach for many. As families brace for these hikes, the issue of healthcare affordability is becoming a ticking time bomb that cannot be ignored.
Sources:
www.kff.org/report-section/ehbs-2024-section-1-cost-of-health-insurance/