Health insurance premiums have risen this year, regardless of how individuals obtain their insurance, due to several common factors identified by experts.
A key reason for the increase is the rise in doctor visits by Americans in recent years. This surge is partly attributed to deferred treatments during the pandemic, which led to later-stage diagnoses and more intensive treatments.
Experts also highlight an increase in chronic diseases such as cancer, heart disease and obesity among Americans. The costs associated with popular obesity medications have further driven up pharmaceutical expenses.
According to the health policy research group KFF, several insurers under the Affordable Care Act have pointed to these medications as a reason for the premium hikes.
In addition to health insurance costs, child care expenses are a significant burden for families. New data from LendingTree shows that the average American family struggles to afford child care for two children.
The research indicates that the average annual cost of care for an infant and a four-year-old together exceeds $28,000. Federal guidelines consider child care affordable if it accounts for less than 7% of a family’s income.
This means a family would need to earn more than $402,000 annually, nearly three times the average income for families with two children.
