US individual health insurance enrollment fell to 20.5 million as of June, KFF says

The number of people enrolled in individual health insurance plans under the Affordable Care Act (ACA) and other sources dropped by 18% to 20.5 million in June, according to the health policy research firm KFF. This represents the most significant annual decline since 2015, as Americans grapple with increasing health insurance costs.

In the same period last year, enrollment was at 25.2 million. The ACA, enacted under Democratic President Barack Obama in 2010, established income-based government-subsidized health plans for individuals, often referred to as Obamacare.

The COVID-19 pandemic played a significant role in driving this decline, with the extra pandemic subsidies expiring, causing premiums to double or even triple for some individuals. A previous KFF study revealed a 12% year-over-year decrease in enrollment during February. KFF's examination of the individual health insurance market also encompasses plans directly sold by insurers and those not regulated by the ACA, such as short-term coverage.

Robert F. Kennedy Jr., the US Health and Human Services Secretary, stated in a press briefing that approximately 20 million people currently rely on Obamacare. KFF predicts that enrollment will continue to decline through 2026. In a March survey by KFF, 17% of members enrolled in Obamacare plans expressed doubt about their ability to pay premiums for the year.

Several insurers, including Centene and UnitedHealth, have reported rising medical costs in their Obamacare businesses this year. These companies requested a median rate increase of 14% this year, marking the second-highest hike in premiums in nearly a decade. The insurers cited a riskier patient mix as the primary reason for their premium requests. KFF's analysis of insurer marketplace enrollment is based on regulatory filings.