Health Insurance Premiums More than Double as Insurers Report Billions in Profit
SEATTLE, Sept. 2, 2020 /PRNewswire/ -- QuoteWizard®, a LendingTree company, and one of the nation's leading online insurance marketplaces released a report on how top health insurers report billions in profit during the pandemic. During the pandemic, we've seen millions contract COVID-19 and file for unemployment, and small businesses fight to stay open.
With many in the U.S. struggling during the pandemic, it's health insurance companies that are thriving. Top health insurance companies UnitedHealth Group, Humana and Anthem reported billion-dollar second-quarter profits that doubled year over year. How is it that health insurance companies could be raking in massive profit during a pandemic that is seeing hospital capacity overwhelmed, people losing employer health insurance and unpaid health care piling up?
Visit the full report here, https://quotewizard.com/news/posts/health-insurers-record-profits-during-pandemic
Key Findings:
- Health insurance companies report doubling billion-dollar profits during the pandemic in Q2 2020 compared to Q2 2019.
- Since 2009, employer health care premiums rose 57%, or an average of $7,459 per year.
- United Healthcare reported a medical loss ratio of 70.2%, accounting for its record profits in Q2 2020.
- The Affordable Care Act mandates insurance companies return 80% of profits back to policyholders in the form of rebates.
- Hospital debt increased from $617 million in 2015 to $56 billion in 2018.
Methodology
QuoteWizard analyzed State Health Access Data Assistance Center data on annual average costs of employer health insurance plans. We looked at the average costs of a family insurance plan from a period of 2009 to 2019 to evaluate the growth rate of insurance plan costs. Each state was evaluated over the 10-year time period to see which states saw the largest growth in health insurance premiums.
Rankings below are based on which states saw the largest increase in employer-sponsored family health insurance premiums from 2009 to 2019.
Rank | State | 2009 Average Cost | 2019 Average Cost | % Increase |
1 | Montana | $11,365 | $20,193 | 77.7% |
2 | South Dakota | $11,596 | $20,265 | 74.8% |
3 | Oklahoma | $11,417 | $19,819 | 73.6% |
4 | South Carolina | $12,343 | $20,973 | 69.9% |
5 | New York | $13,757 | $22,874 | 66.3% |
6 | Kentucky | $12,407 | $20,612 | 66.1% |
7 | Ohio | $11,870 | $19,621 | 65.3% |
8 | California | $12,631 | $20,788 | 64.6% |
9 | Indiana | $12,872 | $21,169 | 64.5% |
10 | Hawaii | $11,826 | $19,243 | 62.7% |
11 | Delaware | $12,682 | $20,628 | 62.7% |
12 | West Virginia | $12,554 | $20,403 | 62.5% |
13 | Arkansas | $10,969 | $17,773 | 62.0% |
14 | Idaho | $11,887 | $19,258 | 62.0% |
15 | Alaska | $14,182 | $22,969 | 62.0% |
16 | Missouri | $12,353 | $19,900 | 61.1% |
17 | New Jersey | $13,750 | $22,060 | 60.4% |
18 | Florida | $12,912 | $20,714 | 60.4% |
19 | Kansas | $11,829 | $18,867 | 59.5% |
20 | North Dakota | $11,590 | $18,400 | 58.8% |
21 | Nebraska | $12,227 | $19,398 | 58.6% |
22 | Texas | $13,221 | $20,966 | 58.6% |
23 | Virginia | $12,622 | $19,865 | 57.4% |
24 | Utah | $11,869 | $18,674 | 57.3% |
United States | $13,027 | $20,486 | 57.3% | |
25 | Minnesota | $13,202 | $20,751 | 57.2% |
26 | Washington | $12,758 | $20,033 | 57.0% |
27 | Pennsylvania | $13,229 | $20,673 | 56.3% |
28 | Arizona | $12,813 | $19,966 | 55.8% |
29 | Iowa | $12,036 | $18,752 | 55.8% |
30 | Michigan | $13,160 | $20,425 | 55.2% |
31 | Tennessee | $12,134 | $18,748 | 54.5% |
32 | Georgia | $12,792 | $19,720 | 54.2% |
33 | Maine | $13,522 | $20,731 | 53.3% |
34 | North Carolina | $13,087 | $19,996 | 52.8% |
35 | Connecticut | $14,064 | $21,363 | 51.9% |
36 | Oregon | $12,783 | $19,405 | 51.8% |
37 | Colorado | $13,360 | $20,171 | 51.0% |
38 | Illinois | $13,708 | $20,659 | 50.7% |
39 | Rhode Island | $13,608 | $20,481 | 50.5% |
40 | New Mexico | $12,848 | $19,185 | 49.3% |
41 | Alabama | $11,978 | $17,734 | 48.1% |
42 | Nevada | $12,700 | $18,720 | 47.4% |
43 | Vermont | $14,558 | $21,419 | 47.1% |
44 | Maryland | $13,833 | $20,285 | 46.6% |
45 | Massachusetts | $14,723 | $21,424 | 45.5% |
46 | New Hampshire | $13,822 | $20,078 | 45.3% |
47 | Mississippi | $12,590 | $17,860 | 41.9% |
48 | Wyoming | $14,319 | $19,925 | 39.2% |
49 | Wisconsin | $14,656 | $20,345 | 38.8% |
50 | Louisiana | $13,846 | $19,032 | 37.5% |
About QuoteWizard QuoteWizard (quotewizard.com) is an insurance comparison marketplace for consumers looking to save on insurance. QuoteWizard provides consumers with direct access to thousands of qualified agents in all 50 states, as well as major carriers, who offer personalized quotes and the opportunity to save up to 40% on auto, home, health, and life insurance. Agents and carriers, in turn, benefit from millions of highly qualified leads, calls, and traffic to their site. Based in Seattle, QuoteWizard was founded in 2006.
For more information, go to quotewizard.com, like our Facebook page and/or follow us on Twitter @quotewizard.
About LendingTree LendingTree (NASDAQ: TREE) is the nation's leading online marketplace that connects consumers with the choices they need to be confident in their financial decisions. LendingTree empowers consumers to shop for financial services the same way they would shop for airline tickets or hotel stays, comparing multiple offers from a nationwide network of over 500 partners in one simple search, and can choose the option that best fits their financial needs. Services include mortgage loans, mortgage refinances, auto loans, personal loans, business loans, student refinances, credit cards and more. Through the My LendingTree platform, consumers receive free credit scores, credit monitoring, and recommendations to improve credit health. My LendingTree proactively compares consumers' credit accounts against offers on our network and notifies consumers when there is an opportunity to save money. In short, LendingTree's purpose is to help simplify financial decisions for life's meaningful moments through choice, education and support. LendingTree, LLC is a subsidiary of LendingTree, Inc.
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