This report covers the rate change requests submitted by insurance carriers across the United States, providing employers and brokers with an early insight into potential changes in their state.

While some carriers are proposing increases, others want to lower their premiums. The nationwide average change is a 7% increase, but the variations by state and carrier tell a more nuanced story.

In this section, we highlight the states with the most significant rate changes, along with notable carrier-specific requests that could shape the insurance landscape in the coming year.

Lowest Average Change: Alabama (-3.12%)

Alabama leads with the most favorable rate changes, showing an average decrease of -3.12%. This decrease points to a competitive individual insurance market, where carriers are lowering premiums to attract enrollees.

Highest Average Change: New York (24.61%)

On the opposite end of the spectrum, New York is experiencing the highest average rate increase at 24.61%. This substantial rise indicates that carriers in New York are adjusting premiums significantly, most likely due to rising healthcare costs or increased claims.

Largest Carrier Decrease: Celtic Insurance Company (DE, -14.00%)

Celtic Insurance Company in Delaware has submitted the most substantial rate decrease request, proposing a -14.00% reduction. If approved, this could provide relief to policyholders in the state, making individual plans more affordable.

Largest Carrier Increase: Health Insurance Plan of Greater New York (NY, 51.10%)

Conversely, the Health Insurance Plan of Greater New York has requested the highest rate increase, 51.10%. If approved, such a sharp rise may encourage individuals and businesses to explore alternative health coverage options.

Suppose the rate changes in your carrier or state are lower than the increases in your group plan rates for 2024. In that case, it might be an opportune time to consider an Individual Coverage Health Reimbursement Arrangement (ICHRA) for your company.

ICHRA offers a promising solution for employers to potentially reduce healthcare costs. It allows employers to reimburse employees for individual health insurance premiums and other qualified health expenses, offering a flexible alternative to traditional group health plans. In a year where rate changes vary widely, ICHRA could provide a cost-effective and customizable solution for your workforce.

The chart below offers a detailed examination of state-rate changes. While the rate changes highlighted in this report are subject to regulatory approval, they offer a glimpse into the trends that could shape the 2025 health insurance landscape.

If you're interested in a comprehensive state-by-state analysis, download our 2025 Individual Carrier Rate Change Requests By State whitepaper.

This report offers brokers, individuals, and employers an early look at the potential rate changes for individual health insurance carriers in their state. While these requests provide insight into what might be coming, it’s important to note that they are not yet final. Approved rates could differ significantly from the initial proposals.

For those in states where the individual market is particularly competitive, or if your preferred carrier’s individual rates are more favorable than your current group plan, there’s an opportunity to leverage these rates through Health Reimbursement Arrangements (HRAs), such as ICHRA and QSEHRA. These products can allow you to take advantage of lower individual market rates while providing flexibility and cost savings.

Our team knows the ins and outs of the health insurance marketplace and will guide you towards the solution that make the most sense for your business and your team. Come with questions! Our experts are happy to dig into the details to get you the clarity you need.

During the call, Liferaft will run a cost-benefit analysis on your company's current healthcare spending and show you different ways you can save—without sacrificing plan quality. After your consult, Liferaft will design a unique plan for your employee's health insurance, including suggested plans and accounts, plan policy documents, and the annual budget.