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Why Marketplace Health Insurance Costs Keep Climbing in America

Why Marketplace Health Insurance Costs Keep Climbing in America

Mar 19, 2024

Why Marketplace Health Insurance Costs Keep Climbing in America

Have you ever wondered why every year, it feels like the cost of healthcare and marketplace insurance in America takes another leap upwards, almost like it's trying to make us all poor? It's a question that bugs a lot of us, especially when we're trying to make ends meet. We are going to break down the complex world of healthcare into bite-sized, easy-to-understand pieces. And stick around, because by the end, I'll introduce you to a game-changer in how we can manage these costs, something called

The Rising Tide of Healthcare Costs

Imagine you're in a boat (your budget) trying to navigate the waves (healthcare costs). Each year, the waves get bigger. Why? Well, there are a few reasons. First, Health Insurance is robbing you. Every year the cost goes up and for what? It's a blackbox. Then, there's the cost of prescription drugs, which seems to be on an endless upward spiral. In 2023, the average cost of health insurance for a family of four was approximately $23,968 per year. In 2014 it was $16,834 for family coverage. It's never-ending.

The Role of Marketplace Insurance

Marketplace insurance, a key component of the Affordable Care Act, was supposed to make healthcare more accessible and affordable. And it did, to an extent, by providing a platform for Americans to shop for insurance plans. However, despite its good intentions, marketplace insurance costs have also been climbing. Why? Let's find out.

Factors Driving Up Marketplace Insurance Costs

Several factors contribute to the rising costs of marketplace insurance. For starters, there's the issue of limited competition, which can lead to higher prices. Then, insurance companies have to account for the uncertain nature of healthcare: they're essentially trying to predict the future in terms of how much care their members will need and they never get it right.

The Impact of Rising Costs on Americans

The consequence? Many Americans find themselves between a rock and a hard place, struggling to afford their premiums while also trying to manage high out-of-pocket costs for care and medications. It's a tough situation that leaves too many people having to make difficult choices about their health and finances.

The Traditional Insurance Model vs. CrowdHealth

Here's where things get interesting. The traditional insurance model works like a middleman, collecting your premiums and then deciding how and when to pay out for your care. But what if we could cut out the middleman?

How is Changing the Game

Enter It's not insurance; it's a revolutionary way for people to directly fund each other's healthcare costs. Think of it like a community potluck, where everyone brings something to the table. If you need help, there's a fund supported by the community to cover your healthcare costs. This model can significantly reduce overhead costs and, in turn, lower what you pay.


The journey through the landscape of healthcare and marketplace insurance in America is a bit like navigating those rising waves in our boat. It's challenging and can feel overwhelming. But with innovative solutions like, there's hope on the horizon. By supporting each other directly, we can potentially turn the tide, making healthcare more affordable and accessible for everyone.


  1. Why are healthcare costs in America rising?
    Healthcare costs are rising due to advancements in medical technology, the high cost of prescription drugs, and an aging population requiring more care.
  2. What is marketplace insurance?
    Marketplace insurance is a platform created by the Affordable Care Act that allows Americans to shop for and enroll in health insurance plans.
  3. Why is marketplace insurance getting more expensive?
    Costs are rising due to factors like limited competition in certain areas and the unpredictable nature of healthcare needs.
  4. What makes different from traditional insurance? cuts out the middleman by allowing members to fund each other's healthcare costs directly, potentially reducing overhead and lowering costs.
  5. Can be a better alternative for everyone?
    While offers a novel approach to managing healthcare costs, it's important for individuals to consider their specific needs and circumstances before deciding if it's the right choice for them.


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