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By Ryan Kennelly

October 24, 2017

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  • Individual & Family Health Insurance
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Are Subsidies Going Away in 2025?

October 24, 2017

  • Individual & Family Health Insurance
Are Subsidies Going Away in 2025?

No! Subsidies are still around. What you’ve heard on the news refers to a certain type of subsidies, called “CSRs”(available to the poorest eligible people for silver plans to lower out of pocket costs) and while the administration has determined that they will not pay to fund these specific subsidies, health insurance companies are still required to offer them.

The fallout from this funding is that insurance premiums are likely to rise to make up for the loss of funding in 2025 and beyond. The existing subsidies scale to pricing, so if you get a subsidy you won’t really be affected, so those who don’t get subsidies will be the most impacted down the road.

This year, insurers set premiums for 2024 amid the coronavirus pandemic, which has created considerable uncertainty as to what health costs, utilization and enrollment will look like next year. In 2025, many insurers have provided premium relief and/or voluntarily waived cost-sharing for COVID-19 treatment for their members due to excessive profits and low medical loss ratios during the pandemic.

Now that 2024 rates are finalized, we reviewed rate filings for an overall average premium increase across all plans on the individual market, with a focus on the effect of the pandemic on rate changes. We find that the majority of rate changes for 2025 are still moderate, with increases or decrease of a few percentage points. Proposed rate changes range from a -42.0% decrease to a 25.6% increase, though half fall between a 3.5% decrease and 4.6% increase (Table 1). Insurer and state level rates are shown in Table 2.

Table 1: Overall Rate Change and COVID-19 Load Among ACA Marketplace Plans
OverallRate ChangeImpact of COVID-19 on Rates*
25th Percentile-3.5%0.0%
Median1.1%0.0%
75th Percentile4.6%2.0%
*Among plans that specified an impact of COVID-19. Many filings included COVID-loads that were redacted.
SOURCE: KFF analysis of insurer rate filings to state regulators.

118 of the 273 (43%) filings specified the effect of COVID-19 on their rates for next year. Among these insurers, the impact of COVID-19 on 2021 premiums ranges from a 3.4% decrease to an 8.4% increase, with half of insurers falling between no impact (0.0%) and 2.0% increases (Table 1). Many insurers used similar language to describe their approach to the pandemic, noting that it would put both upward and downward pressure on health costs in 2024 (see examples below).

The most common factors that insurers cited as driving up health costs in 2024 were the continued cost of COVID-19 testing, the potential for widespread vaccination, the rebounding of medical services delayed from 2020, and morbidity from deferred or foregone care. At the same time, many insurers expect health care utilization to remain lower than usual next year as people continue to observe social distancing measures and avoid routine care, especially in absence of a vaccine or in the event of future waves of the virus. At least 53 insurers included a COVID-19 impact of 0% on their premiums because they did not have enough information to confidently alter their premiums or estimated that these factors would offset one another. 29 of the 273 filings (11%) did not mention COVID-19 at all in their rate filings.

The range of COVID-19 loads included in 2025 rate filings partly reflects differences in issuers’ assumptions about the course of the pandemic and individual behavior next year. Below are a handful of representative explanations that insurers provided to justify any impact that COVID-19 had on their overall 2025 rate filings. These examples provide a glimpse of the different expectations that insurers have regarding the availability and distribution of a vaccine, the extent to which pent-up demand for health care services will rebound in 2025, and various other factors.

Pent-up demand and morbidity adjustments. Many insurers expect that health costs will increase in 2024 due to pent-up demand following deferred care, direct costs related to COVID-19 testing and treatment, and vaccination costs, assuming a vaccine will be ready and available to the general public next year. Some insurers also anticipate increased morbidity resulting from deferred care and the impact of that deferred care on chronic conditions, as well as from the impact of the economic downturn on individuals’ health and insurance status.

You can use our plan finder to apply on or off exchange, calculate your subsidy, and see what plans accept your doctors here:

Enroll in a 2024 Health Insurance Plan

Table 2: Rate Change and COVID-19 Load Among ACA Marketplace PlansBy State and Insurer
State/InsurerRate ChangeImpact of COVID-19 on Rates
Alabama*
    Blue Cross Blue Shield of Alabama4.90%Unknown
    Bright Health Insurance Company25.60%Unknown
Alaska*
    Moda Assurance Company0.11%No mention
    Premera Blue Cross Blue Shield of Alaska-4.15%No mention
Arizona*
     Blue Cross and Blue Shield of Arizona1.82%Unknown
     Bright Health Company of Arizona9.33%Unknown
     Cigna HealthCare of Arizona1.87%No mention
     Health Net of Arizona-0.80%Unknown
     Oscar Health Plan-6.75%Unknown
Arkansas
    Celtic Insurance Company4.91%Unknown
    QCA Health Plan3.05%Unknown
    QualChoice Health and Life Insurance3.00%Unknown
    USAble Mutual Insurance2.90%0.00%
    Oscar Insurance CompanyNew entrantUnknown
    HMO Partners Health AdvantageNew entrant0.00%
California
    Blue Cross of California (Anthem)6.00%No mention
    Blue Shield of California-2.40%Unknown
    Chinese Community Health Plan-1.30%Unknown
    Health Net3.40%1.20%
    Kaiser Permanente1.00%Unknown
    LA Care Health Plan-4.60%No mention
    Molina Healthcare-3.80%0.90%
    Oscar Health Plan of California7.60%Unknown
    Sharp Health Plan-0.50%0.00%
    Valley Health Plan9.00%Unknown
    Western Health Advantage-2.60%Unknown
Colorado
    Anthem (HMO Colorado Inc.)0.30%Unknown
    Bright Health Insurance Company-5.50%Unknown
    Cigna Health and Life Insurance Company3.00%1.00%
    Denver Health Medical Plans-4.60%6.40%
    Friday Health Plan-5.10%No mention
    Kaiser Foundation Health Plan of Colorado-1.50%0.00%
    Oscar Health Plan-4.20%Unknown
    Rocky Mountain HMO-10.00%0.00%
Connecticut
    Anthem Health Plans1.90%0.00%**
    Connecticare-0.10%0.00%**
Delaware
    Highmark Blue Cross Blue Shield-1.00%Unknown
District of Columbia
    CareFirst HMO (Blue Choice)0.10%Unknown
    CareFirst PPO1.00%Unknown
    Kaiser Foundation Health Plan-1.97%Unknown
Florida
    AvMed-3.30%2.00%
    Blue Cross and Blue Shield of Florida3.70%2.00%
    Bright Health Insurance Company of Florida3.70%2.00%
    Celtic Insurance Company3.90%2.00%
    Cigna Health And Life Insurance Company-1.40%2.00%
    Florida Health Care Plan, Inc.-0.10%2.00%
    Health First Commercial Plans4.80%2.00%
    Health Options, Inc2.50%2.00%
    Molina Healthcare of Florida-1.80%2.00%
    Oscar Insurance Company of Florida2.90%2.00%
Georgia*
    Alliant Health Plans18.34%Unknown
    Ambetter of Peach State7.43%0.00%
    Anthem Blue Cross and Blue Shield10.10%3.00%
    CareSource Georgia-10.29%Unknown
    Kaiser Foundation Health Plan of Georgia-19.02%2.50%
    Oscar Health Plan of Georgia2.11%Unknown
Hawaii
    Kaiser Foundation Health Plan-1.06%No mention
    Hawaii Medical Service Association-3.10%No mention
Idaho
    Blue Cross of Idaho Health Service-3.50%No mention
    Mountain Health Cooperative2.00%0.00%
    Pacific Source Health Plans-7.10%0.00%
    Regence Blue Shield of Idaho-1.30%No mention
    SelectHealth5.90%No mention
Illinois*
    Blue Cross Blue Shield of Illinois-0.12%Unknown
    Celtic Insurance Company0.26%0.00%
    Cigna HealthCare of Illinois, Inc.0.89%1.00%
    Health Alliance Medical Plans, Inc.0.00%Unknown
    Quartz Health Benefit Plans Corporation-10.05%Unknown
Indiana
    Anthem Insurance Companies, Inc.-0.30%No mention
    CareSource Indiana, Inc.4.30%0.00%
    Celtic Insurance Company-0.55%1.90%
Iowa*
    Medica Insurance Company2.45%Unknown
    Wellmark Health Plan of Iowa, Inc.-42.04%Unknown
    Oscar Health Plan of IowaNew entrantUnknown
Kansas*
    Blue Cross and Blue Shield of Kansas0.70%Unknown
    Cigna Health and Life Insurance9.96%1.00%
    Medica Insurance Company7.78%5.00%
    Oscar Insurance Company-7.86%Unknown
    Sunflower State Health Plan4.00%Unknown
Kentucky
    Anthem Health Plans of Kentucky5.69%2.60%
    Care Source Kentucky4.00%Redacted
Louisiana*
    CHRISTUS Health Plan Louisiana7.44%Unknown
    HMO Louisiana9.50%Unknown
    Louisiana Health Service & Indemnity7.95%Unknown
    Vantage Health Plan2.64%Unknown
Maine
    Anthem Health Plans of Maine-12.50%2.50%
    Harvard Pilgrim Health Plan-13.00%0.00%
    Maine Community Health Options-13.70%-1.20%
Maryland
    CareFirst Blue Choice-11.90%0.00%
    CareFirst CFMI-17.10%0.00%
    CareFirst GHMS-17.10%0.00%
    Kaiser Foundation Health Plan-11.00%0.00%
    Optimum Choice (UnitedHealthcare)New EntrantUnknown
Massachusetts*
    Blue Cross and Blue Shield of Massachusetts HMO Blue6.17%0.00%
    Fallon Community Health Plan3.52%0.00%
    Harvard Pilgrim Health Care7.25%No mention
    Health New England2.23%Unknown
    Tufts Associated HMO9.03%Unknown
    Tufts Health Public Plans12.27%0.00%
    UnitedHealthcare Insurance Company15.10%Unknown
    BMC HealthNetUnknownUnknown
    AllWays Health PartnersUnknownUnknown
Michigan*
    Blue Care Network of Michigan2.50%No mention
    Blue Cross Blue Shield of Michigan1.70%No mention
    Oscar Insurance Company6.00%4.00%
    McLaren Health Plan Community-2.00%0.00%
    Meridian Health Plan of Michigan-5.60%2.00%
    Molina Healthcare of Michigan0.40%Unknown
    Physicians Health Plan3.10%3.00%
    Priority Health Insurance-0.13%0.00%
    Total Health Care USA-0.39%0.00%
Minnesota
    Blue Plus HMO4.21%Unknown
    Group Health Plan Inc0.67%Unknown
    Medica Insurance Company2.42%Unknown
    Preferred One Insurance Company1.05%Unknown
    Quartz Health PlanNew entrantUnknown
    UCare MN1.60%0.00%
Mississippi*
    Ambetter of Magnolia Inc.11.19%Unknown
    Molina Healthcare of Mississippi, Inc-2.67%Unknown
Missouri*
    Blue Cross and Blue Shield Kansas CityNew entrantNo mention
    Celtic Insurance Company9.10%Unknown
    Cigna Health & Life Insurance Company1.40%Unknown
    Cox Health Systems Insurance Company13.60%No mention
    Healthy Alliance Life Insurance Company-1.44%Unknown
    Medica Insurance Company-7.50%Unknown
    Oscar Insurance Company6.40%Unknown
    SSM Health Insurance Company-0.49%Unknown
Montana
    HCSC (Blue Cross Blue Shield of Montana)0.00%No mention
    Montana Health Co-Op0.68%No mention
    Pacific Source Health Plans5.00%No mention
Nebraska*
    Medica Insurance Company5.36%Unknown
    Bright HealthUnknownUnknown
Nevada
    Friday Health Plans of NevadaNew entrantUnknown
    Health Plan of Nevada Incorporated5.00%Unknown
    HMO Colorado INC D/BA HMO Nevada3.90%Unknown
    Hometown Health Plan-5.00%Unknown
    Hometown Health Providers Insurance-1.60%Unknown
    Rocky Mountain Hospital and Medical Service11.00%Unknown
    SelectHealthNew entrantUnknown
    Sierra Health and Life Insurance Company9.80%Unknown
    SilverSummit Health Plan2.30%Unknown
New Hampshire*
    Celtic Insurance Company-4.50%0.00%
    Harvard Pilgrim Health Care-13.54%0.00%
    Matthew Thornton Health Plan (Anthem BCBS)-15.12%Unknown
New Jersey*
    AmeriHealth HMO11.22%1.00%
    AmeriHealth Insurance Company of New Jersey3.82%1.00%
    Horizon Healthcare Services-1.43%Unknown
    Oscar Garden State Insurance10.59%Unknown
New Mexico
    Molina Healthcare of New Mexico-0.40%Unknown
    Blue Cross Blue Shield of New Mexico (HCSC)-7.61%Unknown
    True Health-1.40%No mention
    Friday Health PlansNew EntrantUnknown
    Western Sky AmbetterNew EntrantUnknown
New York
    Capital District Physicians Health Plan4.30%0.00%
    Health Insurance Plan of Greater New York (Emblem)3.80%2.00%
    Excellus-0.20%0.50%
    Fidelis (NY Quality Healthcare Corp)1.60%8.40%
    Healthfirst PHSP, Inc.-2.50%0.00%
    Healthnow New York-2.80%2.00%
    HealthPlus HP1.00%5.15%
    IHBC-5.30%0.00%
    MetroPlus5.00%2.10%
    MVP Health Plan3.80%1.60%
    Oscar4.90%7.40%
    UnitedHealthcare of New York4.80%1.00%
North Carolina*
    Ambetter of North Carolina3.90%0.00%
    BCBS of NC4.10%Unknown
    Bright Health Company of North Carolina1.98%Unknown
    CIGNA HealthCare of North Carolina-10.50%No mention
    Oscar Health Plan of NCNew entrantUnknown
    UnitedHealthCare of Wisconsin, Inc.New entrantUnknown
North Dakota*
    Blue Cross Blue Shield of North Dakota4.42%No mention
    Medica Health Plans13.16%Unknown
    Sanford Health Plan20.33%Unknown
Ohio*
    AultCare Insurance Company-4.99%2.00%
    Buckeye Community Health Plan1.35%0.00%
    CareSource9.30%0.00%
    Community Insurance Company-3.22%Unknown
    Medical Health Insuring Corp. of Ohio2.30%0.00%
    Molina Healthcare of Ohio-0.80%0.00%
    Oscar Buckeye State Insurance Corporation-0.90%0.30%
    Oscar Insurance Corporation of Ohio6.70%-0.10%
    Paramount Insurance Company8.94%0.00%
    SummaCare2.50%0.00%
Oklahoma*
    Blue Cross Blue Shield of Oklahoma-0.05%Unknown
    Bright Health Insurance Company1.84%Unknown
    CommunityCare HMO Inc.-24.40%Unknown
    Medica Insurance Company-5.27%Unknown
    Oscar Insurance CompanyNew entrantUnknown
    UnitedHealthcareNew entrantUnknown
Oregon
    Bridgespan Health Company11.10%0.00%
    Kaiser Foundation Health Plan of the Northwest-3.51%0.00%
    Moda4.70%0.90%
    PacificSource Health Plans4.20%0.00%
    Providence Health Plan1.40%1.00%
    Regence Blue Cross Blue Shield2.50%0.00%
Pennsylvania
    Capital Advantage Assurance Company-14.43%0.00%
    Highmark Inc.-0.67%2.50%
    Highmark Benefits Group-3.96%2.50%
    Highmark Coverage Advantage3.12%2.50%
    Geisinger Health Plan-11.28%0.00%
    Geisinger Quality Options-13.57%0.00%
    Keystone Health Plan East-3.91%1.00%
    QCC Insurance Company-3.88%1.00%
    UPMC Health Options1.28%0.00%
    PA Health and Wellness-6.60%1.40%
    Oscar Health Plan of PA6.68%2.10%
Rhode Island*
    Blue Cross Blue Shield of Rhode Island4.96%Unknown
    Neighborhood Health Plan of Rhode Island5.60%2.50%
South Carolina
    Absolute Total Care, Inc8.50%0.00%
    Blue Cross and Blue Shield of South Carolina-1.85%Unknown
    Bright Health Company of South Carolina-0.05%Unknown
    Molina Healthcare of South Carolina-3.60%Unknown
South Dakota*
    Avera Health Plans, Inc.4.29%Unknown
    Sanford Health Plan0.24%1.02%
Tennessee
    Celtic Insurance Company-2.50%2.00%
    Cigna Health and Life Insurance Company-6.01%1.00%
    Blue Cross Blue Shield of Tennessee9.82%1.80%
    Bright Health Insurance Company of Tennessee3.01%-2.00%
    Oscar Healthcare9.90%-0.50%
    United healthcare Insurance CompanyNew entrant0.00%
Texas*
    Blue Cross Blue Shield of Texas2.97%Unknown
    Celtic Insurance Company11.69%0.00%
    CHRISTUS Health Plan3.16%Unknown
    Community Health Choice, Inc.8.65%Unknown
    Molina Healthcare of Texas, Inc.5.30%Unknown
    Oscar Insurance Company9.91%Unknown
    Sendero Health Plans, Inc.8.81%0.00%
    SHA FirstCare Health Plans2.81%-3.40%
Utah
    Cigna Health and Life Insurance Company2.20%1.00%
    Molina Healthcare of Utah-1.63%0.00%
    Regence BlueCross BlueShield of Utah-7.31%0.00%
    SelectHealth-1.60%No mention
    University of Utah Health Insurance Plans3.00%Unknown
Vermont
    Blue Cross Blue Shield of Vermont4.20%0.00%
    MVP Health Care2.70%1.30%
Virginia*
    CareFirst BlueChoice,-9.70%0.00%
    Cigna Health and Life Insurance Company-11.70%1.00%
    Group Hospitalization and Medical Services5.20%0.00%
    HealthKeepers-7.70%Unknown
    Kaiser Foundation Health Plan of the Mid-Atlantic States-13.00%0.00%
    Optima Health Insurance Company-2.00%Unknown
    Optima Health Plan – HMO7.74%0.90%
    Optimum Choice, Inc.New entrantUnknown
    Oscar Insurance Company2.20%0.20%
    Piedmont Community Healthcare HMO, Inc.-3.40%Unknown
Washington
    Bridgespan Health Comapny-0.17%Unknown
    Community Health Network of WashingtonNew entrantNo mention
    Coordinated Care Corporation0.93%Unknown
    Kaiser Foundation Health Plan of the Northwest-1.87%No mention
    Kaiser Foundation Health Plan of Washington-4.86%Unknown
    Lifewise Health Plan of Washington-2.06%Unknown
    Molina Healthcare of Washington Inc.-3.19%3.20%
    Pacific Source Health Plans7.63%Unknown
    Premera Blue Cross-8.67%Unknown
    Providence Health Plan3.18%No mention
    Regence Blue Cross Blue Shield of Oregon-4.08%Unknown
    Regence BlueShield-5.35%Unknown
    UnitedHealthcare of OregonNew entrant2.50%
West Virginia*
    CareSource West Virginia Co.6.26%Unknown
    Highmark Blue Cross Blue Shield West Virginia4.34%Unknown
    The Health Plan of West Virginia, Inc.3.67%No mention
Wisconsin*
    Aspirus Arise Health Plan of Wisconsin, Inc-12.89%-2.20%
    Children’s Community Health Plan-7.47%Unknown
    Common Ground Healthcare Cooperative-6.25%Unknown
    Dean Health Plan-2.27%Unknown
    Group Health Cooperative of South Central Wisconsin-6.81%Unknown
    HealthPartners Insurance Company-3.40%Unknown
    Medica Community Health Plan5.87%Unknown
    MercyCare HMO, Inc.-1.39%Unknown
    Molina Healthcare of Wisconsin, Inc.-3.50%Unknown
    Network Health Plan3.34%Unknown
Wyoming
    Blue Cross Blue Shield of Wyoming-10.2%Unknown
*Indicates that the rates shown for the state have not been finalized.
**Connecticut Insurance Department instructed insurers to include a COVID-impact of 0%
NOTE: ‘Unknown’ includes plans where the rate change or impact of COVID-19 on rates was redacted or otherwise unavailable for some reason.
SOURCE: KFF analysis of insurer rate filings to state regulators.

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