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REPORT: Health Insurance Premiums More than Double as Insurers Report Billions in Profit

In a not so surprising report released this week, health insurance premiums have more than double for most insured people in nearly every state – and the bottom line for insurers continues to improve. 

In a not so surprising report released this week, health insurance premiums have more than double for most insured people in nearly every state – and the bottom line for insurers continues to improve.

QuoteWizard®, a LendingTree company, and one of the nation’s online insurance marketplaces released a report on how top health insurers reported billions in profit prior to -and even during- the pandemic.

From the press release on the report:

With many in the U.S. struggling during the pandemic, it’s health insurance companies that are thriving. Top health insurance companies UnitedHealth Group, Humana and Anthem reported billion-dollar second-quarter profits that doubled year over year. How is it that health insurance companies could be raking in massive profit during a pandemic that is seeing hospital capacity overwhelmed, people losing employer health insurance and unpaid health care piling up?

View the full report here.

Key Findings:

  • Health insurance companies report doubling billion-dollar profits during the pandemic in Q2 2020 compared to Q2 2019.
  • Since 2009, employer health care premiums rose 57%, or an average of $7,459 per year.
  • United Healthcare reported a medical loss ratio of 70.2%, accounting for its record profits in Q2 2020.
  • The Affordable Care Act mandates insurance companies return 80% of profits back to policyholders in the form of rebates.
  • Hospital debt increased from $617 million in 2015 to $56 billion in 2018.

 

Rankings below are based on which states saw the largest increase in employer-sponsored family health insurance premiums from 2009 to 2019.

Rank

State

2009 Average Cost

2019 Average Cost

% Increase

1

Montana

$11,365

$20,193

77.7%

2

South Dakota

$11,596

$20,265

74.8%

3

Oklahoma

$11,417

$19,819

73.6%

4

South Carolina

$12,343

$20,973

69.9%

5

New York

$13,757

$22,874

66.3%

6

Kentucky

$12,407

$20,612

66.1%

7

Ohio

$11,870

$19,621

65.3%

8

California

$12,631

$20,788

64.6%

9

Indiana

$12,872

$21,169

64.5%

10

Hawaii

$11,826

$19,243

62.7%

11

Delaware

$12,682

$20,628

62.7%

12

West Virginia

$12,554

$20,403

62.5%

13

Arkansas

$10,969

$17,773

62.0%

14

Idaho

$11,887

$19,258

62.0%

15

Alaska

$14,182

$22,969

62.0%

16

Missouri

$12,353

$19,900

61.1%

17

New Jersey

$13,750

$22,060

60.4%

18

Florida

$12,912

$20,714

60.4%

19

Kansas

$11,829

$18,867

59.5%

20

North Dakota

$11,590

$18,400

58.8%

21

Nebraska

$12,227

$19,398

58.6%

22

Texas

$13,221

$20,966

58.6%

23

Virginia

$12,622

$19,865

57.4%

24

Utah

$11,869

$18,674

57.3%

United States

$13,027

$20,486

57.3%

25

Minnesota

$13,202

$20,751

57.2%

26

Washington

$12,758

$20,033

57.0%

27

Pennsylvania

$13,229

$20,673

56.3%

28

Arizona

$12,813

$19,966

55.8%

29

Iowa

$12,036

$18,752

55.8%

30

Michigan

$13,160

$20,425

55.2%

31

Tennessee

$12,134

$18,748

54.5%

32

Georgia

$12,792

$19,720

54.2%

33

Maine

$13,522

$20,731

53.3%

34

North Carolina

$13,087

$19,996

52.8%

35

Connecticut

$14,064

$21,363

51.9%

36

Oregon

$12,783

$19,405

51.8%

37

Colorado

$13,360

$20,171

51.0%

38

Illinois

$13,708

$20,659

50.7%

39

Rhode Island

$13,608

$20,481

50.5%

40

New Mexico

$12,848

$19,185

49.3%

41

Alabama

$11,978

$17,734

48.1%

42

Nevada

$12,700

$18,720

47.4%

43

Vermont

$14,558

$21,419

47.1%

44

Maryland

$13,833

$20,285

46.6%

45

Massachusetts

$14,723

$21,424

45.5%

46

New Hampshire

$13,822

$20,078

45.3%

47

Mississippi

$12,590

$17,860

41.9%

48

Wyoming

$14,319

$19,925

39.2%

49

Wisconsin

$14,656

$20,345

38.8%

50

Louisiana

$13,846

$19,032

37.5%

Methodology
QuoteWizard analyzed State Health Access Data Assistance Center data on annual average costs of employer health insurance plans. We looked at the average costs of a family insurance plan from a period of 2009 to 2019 to evaluate the growth rate of insurance plan costs. Each state was evaluated over the 10-year time period to see which states saw the largest growth in health insurance premiums.

1 Comment

1 Comment

  1. Avatar

    NELDA SMITH

    September 5, 2020 at 5:51 pm

    WE VOTE FOR AN INSURANCE COMMISSIONER WHO SHOULD BE DOING HIS JOB TO LOWER EVERY GEORGIA CITIZEN`S HOME, AUTO, HEALTH AND LIFE INSURANCE PREMIUMS, NOT ALLOW THEM TO BE RAISED! GEORGIA CITIZEN`S PAY SOME OF THE HIGHEST COSTS IN AUTO INSURANCE IN THE USA THOUGH GA. DRIVERS ARE RANKED AS GOOD DRIVERS…WHY IS THIS? WE NEED OUR INSURANCE COMMISSIONER TO DO HIS JOB AND GET ALL GA. CITIZEN`s INSURANCE RATES LOWERED!

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