Get the facts: I get my insurance through work. Why is my premium going up so much?

• Your premium goes up when the cost of healthcare goes up, and unfortunately, healthcare providers — hospitals, doctors and pharmaceutical companies — have been charging higher and higher prices, a trend that’s on track to intensify. 
• Hospital consolidation, prescription drug costs, provider use of artificial intelligence, and gaming of the No Surprises Act by some providers are all factors contributing to higher premiums.
• While you can’t control your monthly premium, you can save money on healthcare throughout the year when you need care, which can help to offset the increase in your premium.
  

If you get your insurance through work, you might have noticed that your monthly premium seems to go up every year. And it’s only natural if you’re frustrated by these steady increases in the amount of money coming out of your paychecks, especially considering how much more you’re spending on everyday needs like groceries, clothing and housing. 

For many people, even a modest premium increase can mean harder choices about what to prioritize when managing the monthly budget. 

Read on to learn more about why healthcare costs, and in turn, your monthly premium, keep going up and how hospital consolidation, prescription drug costs, provider use of artificial intelligence and the No Surprises Act are contributing to higher premiums. You’ll also find some ideas for how to save money on the care you and your family need, which can help offset your higher monthly premium payments and help you feel more in control of how your healthcare dollars are spent.

You might assume that premium increases are just a way for your health insurer to make more money, but in reality, your premium goes up when the cost of healthcare goes up. If the cost of going to the doctor, having surgery, or picking up a prescription increases, the cost of your health plan will increase as well. 

That’s because your monthly premium payments, when combined with the payments of everyone else enrolled in your plan, are what’s used to cover the cost of your care. So, if the care itself becomes more expensive, the premiums will need to be higher to cover those costs. 

And unfortunately, care has indeed become more expensive. That’s because healthcare providers — hospitals, doctors and pharmaceutical companies — have been charging higher and higher prices, a trend that’s on track to intensify. Health insurers are projecting a 9% increase in costs in 2027 – the largest increase in nearly two decades.¹

Consider the following:

• According to the Centers for Medicare & Medicaid Services, the amount of money spent on healthcare in the United States tripled from 2000 to 2024, going from $1.4 trillion to $5.3 trillion.²
• Since 2000, hospital prices have increased by more than 250%, which is twice the overall rate for medical care and triple the rate of inflation.³
• A 2025 Kaiser Family Foundation report noted that the prices commercial health plans paid for hospital care increased substantially from June 2014 to December 2024, going up by 50% for inpatient hospital care and by 42% for outpatient hospital care.⁴

This article provides more information about the connection between rising healthcare costs and rising premiums, and it also delves into the role of employers in determining how much people will pay for employer-sponsored health insurance. Rising healthcare costs also impact the out-of-pocket costs people pay for their care, including when they have not yet met their deductible or have to pay coinsurance, as explained in this article.

Healthcare is a highly complex industry, and that’s one of the reasons why rising healthcare costs aren’t well-understood. This article examines one of those reasons: the lack of transparency in healthcare costs, which makes it difficult to find out what hospitals and doctors are charging for care. 

But that’s just one of many factors that are playing a role in rising healthcare costs. 

• This article addresses the reasons why hospital consolidation — when one hospital buys another hospital, or when a health system expands its footprint by buying a hospital — is a main contributor to rising healthcare costs.
• This article focuses on two main reasons why prescription drugs are driving up healthcare costs: more Americans are taking them, and the price has increased significantly.
• One of the newest factors that many healthcare experts believe is contributing to rising healthcare costs is examined in this article: providers could be using AI to increase the amount of money they’re paid without actually changing how they care for their patients.
• And to round out the series, this article takes a look at how a law that was meant to protect Americans from surprise medical bills is actually driving up healthcare costs, and in turn, the premiums people pay for health insurance.

While you can’t control your monthly premium, you’re not powerless when it comes to saving money on healthcare, and it doesn’t require a degree in healthcare economics or hours of time either. 

These tips can help you avoid or offset the increase in your monthly premium:

• Consider switching to a different plan. Many people stick with the same plan for years in part because it’s familiar and they don’t want to deal with the hassle of switching. But if your employer offers multiple plan options, you could find one with a lower monthly premium. Be aware, though, that it might require you to pay a higher deductible, copays and coinsurance. So you’ll need to decide what’s more important to you: a lower monthly premium, or lower costs when you get care. And it’s always a good idea to check the providers in a plan’s network before enrolling to ensure the doctors and hospitals you prefer are included in the network.
• Take advantage of your health plan’s health and wellbeing programs. Many health plans offer discounts on gym memberships or financial rewards for members who meet health and wellness goals. For example, the UHC Store gives UnitedHealthcare members access to a wide variety of programs and services for things like mental health, family planning and weight management, all at a lower price than they would pay if they signed up on their own. So if you haven’t taken the time to explore the resources and programs that your health plan offers, start there. 
• Don’t assume that the cost of a surgery or procedure is the same regardless of the provider you see. In many cases, the costs vary dramatically from one provider to the next, meaning you could save a sizable amount of money if you choose a more cost-efficient provider. Check if your plan offers cost estimate tools that can help you compare the cost of your care at different providers in your plan’s network. For example, UnitedHealthcare’s provider search tool called Smart Choice enables members to compare the average total costs of their care for various providers in their plan’s network. This makes it easier for members to choose a provider that fits both their health needs and their budget.
• If you take prescription medications, ask your provider if a less expensive alternative for any of your drugs is available. When clinically appropriate, making a switch to a generic drug, a biosimilar or an alternative lower-cost drug could potentially save you a significant amount of money in your copay every time you need a refill.
   

These tips could help you save money throughout the year when you need care, helping to offset the increase in your monthly premium. Check out this article for even more ways to save money on the care you and your family need.

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