Most insurers participating in the marketplace requested premium increases between 5% and 10%. Around 15% of plans requested rate decreases, and less than 10% requested rate increases higher than 15%.
The report analyzed public reports insurers made requesting premium increases. Several insurers said GLP-1 drugs, including Ozempic and Wegovy, are one of the things driving premium increases.
“The pharmacy trend, especially cost, is heavily influenced by the impact of GLP-1 drugs and their use in diabetes treatment as well as the expectation for continued use with the approval for expanded indications,” Priority Health, a Michigan insurer, wrote.
Here are three other factors contributing to rising costs:
- Rising medical costs were one of the most commonly cited factors behind the increases. Some insurers also pointed to general economic inflation, increasing administrative and staffing costs for health plans.
- Hospital market consolidation and workforce shortages are also driving up costs, insurers said. Providers are requesting higher rates from payers to cover these rising costs.
- In addition to GLP-1s, other specialty drugs are driving up costs. Some insurers estimated gene therapy costs would rise in 2025, requiring higher premiums.
Read the full report here.
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