Health insurance costs are far outpacing inflation, leaving more consumers on the hook each year for thousands of dollars in out-of-pocket expenses. At the same time, some insurers are rejecting nearly 1 in 5 claims. That double whammy is leaving Americans paying more for coverage yet sometimes feeling like they’re getting less in return, experts say.
Frustration over denials and medical costs has fueled an outpouring of vitriol against health insurance companies in the wake of the murder of UnitedHealthcare CEO Brian Thompson. Also last week, a similar outcry led Anthem Blue Cross Blue Shield to reverse a decision to limit anesthesia coverage during surgeries.
The anger may be rooted in fears that unexpected medical costs could prove financially ruinous, as well as concerns that essential care could be denied by an insurer, putting health and well-being at risk even for those who have health insurance.
Some of those anxieties are well-founded: The top cause of bankruptcy in the U.S. is health care-related debt, underscoring the financial stresses that can stem from high medical costs.
In fact, most adults say they worry about their ability to pay for health care services or unexpected medical bills, a sentiment shared by people regardless of whether they’re financially comfortable or struggling, a KFF survey found earlier this year.
In 2024, the average health insurance premium for families carried a price tag of $25,572 per year, while single workers paid an average of $8,951, representing a 6% and 7% increase from the year earlier, KFF data shows. Since 2000, the rise in health insurance premiums has outpaced inflation for all but a handful of years, the health policy research firm found.
Americans are paying more than ever for health insurance. Denials add to their pain.
