As 2019 draws to a close, many Americans are starting to think about their health insurance coverage for next year. One major question on their minds is whether or not their health contract premiums will increase in 2020.

Factors That Affect Health Contract Premiums

Several factors are at play when it comes to determining health insurance premiums. These include:.

Age
Gender
Location
Smoking status
Pre-existing conditions
Plan type
Deductible and out-of-pocket expense levels
Network size
Medical inflation
Administrative costs

Each of these factors is taken into consideration when an insurer calculates the premium for a particular plan. For example, a 65-year-old smoker with a history of heart disease might pay more for coverage than a healthy 30-year-old.

Similarly, a plan with a low deductible and broad network might have a higher premium than a plan with a high deductible and narrow network.

Trends in Health Contract Premiums

In recent years, health contract premiums have been on the rise. According to a report by the Kaiser Family Foundation, the average employer-sponsored family health contract premium increased by 5% in 2018, up from 3% the year before.

Over the past decade, premiums have increased by 55%, while wages have only increased by 26%.

There are several reasons why health contract premiums are increasing. One is the rising cost of medical care. As technology and drugs advance, medical costs overall tend to increase.

Additionally, the aging of the population and the increasing prevalence of chronic diseases like diabetes and heart disease drive up healthcare spending.

Another factor is the cost of administering health insurance. Insurers have to spend money on staffing, billing, and other administrative tasks.

They also have to comply with numerous regulations and paperwork requirements, which can be time-consuming and expensive.

The ACA has also had an impact on health contract premiums. While the law aimed to increase access to affordable health insurance, it also imposed new rules on insurers.

For example, insurers can no longer deny coverage to people with pre-existing conditions or charge them more for coverage. This means that insurers have to cover more expensive medical conditions without being able to charge higher premiums to cover the costs.

What to Expect in 2020

It’s difficult to predict exactly what will happen with health contract premiums in 2020. However, there are several trends that are worth noting.

First, many insurers are still adjusting to the changes brought about by the ACA. As a result, premiums may continue to rise as insurers figure out how to cope with the new regulations.

Second, the Trump administration has been trying to roll back some of the provisions of the ACA. For example, the administration has eliminated the individual mandate penalty, which required most Americans to have health insurance or pay a fine.

This could lead to healthier people dropping their coverage, which in turn could lead to higher premiums for those who remain.

Third, there is ongoing uncertainty around the future of the ACA. While the law remains in place for now, there are ongoing court cases that could result in major changes.

If the law is struck down, insurers and consumers could be left scrambling to figure out what comes next.

What Can Consumers Do?

There are a few things that consumers can do to try to keep their health contract premiums as low as possible.

First, shop around. Don’t assume that your current plan is the best one for you. Check out other plans in your area to see if there are any that offer comparable coverage at a lower price.

Second, consider a high-deductible plan. These plans often have lower premiums than traditional plans, but they also come with higher deductibles and out-of-pocket expenses.

If you’re relatively healthy and don’t expect to need a lot of medical care, a high-deductible plan could be a good choice.

Third, take care of your health. If you smoke, try to quit. If you’re overweight, try to lose some weight. These lifestyle changes can help you stay healthy and avoid costly medical procedures.

Ultimately, it remains to be seen what will happen with health contract premiums in 2020. However, by being proactive and taking steps to stay healthy, consumers can help keep their costs down.