Study: Individual Insurance Plans Increasing Over Last Year

A new study released by the Kaiser Health Foundation found that millions of people who pay for their own insurance are facing big increases in premium costs. The study says that most people in the US get health insurance through an employer, but there are 14 million under the age of 65 who purchase it through the individual market. And three out of four of those people have recently been told their rates were on the rise.

The study found that the average recent rate increase was 20 percent. Most are paying the increase, but some are switching plans or changing to a different company. “With people in the individual market being hit with average increases of 20%, the survey shows that the steep increases we have been reading about over the last several months are not just extreme cases,” Kaiser Family Foundation President and CEO Drew Altman said in a news release.

The survey found that the average annual premium for someone paying for their own insurance is $3,606 while those with employer-sponsored coverage have annual premiums that are $4,824 on average. Typically older people say they’re paying higher premiums than younger people.  The survey questioned 1,038 people between the ages of 18-64 who pay for their own health insurance coverage.