Health Care Insurance Premiums in 2025

Global Picture

Around the world, health insurance costs are climbing again in 2025. Analysts expect the average medical cost trend to stay in the double-digit range, with Asia-Pacific seeing some of the steepest increases. The main reasons are straightforward: new and expensive drugs, greater demand for health services as populations age, and more people using healthcare after years of delays during the pandemic.

Global insurers also report strong revenue growth from health products, which shows that coverage remains in high demand despite rising prices. For patients and employers, though, this means larger financial commitments just to maintain the same level of protection.

---

Regional Spotlight: Switzerland

In Switzerland, premiums are projected to rise by about 6% in 2025, pushing the average monthly payment close to CHF 379. Higher service usage, advanced treatments, and costly medications are the key drivers. To counteract this, the government has approved reforms that will gradually shift some health financing from insurance premiums to cantonal taxes starting in 2028. Once implemented, this change is expected to save residents several billion francs per year in premiums.

---

United States Outlook

Affordable Care Act (ACA) Plans

For Americans who buy insurance through the ACA marketplace, premiums are set to rise more sharply than in many other countries. Insurers have filed requests showing median increases of about 7% nationwide, but certain states may see jumps well above that—Colorado, for instance, could face increases close to 28%.

Another looming challenge is the scheduled end of expanded federal subsidies in late 2025. If lawmakers do not extend them, premiums could spike dramatically in 2026, with some estimates showing costs rising by three-quarters for certain families. That scenario would likely leave millions without affordable coverage.

Medicare

For seniors, Medicare costs are also trending upward in 2025. The standard monthly premium for Part B rises to $185, and the annual deductible moves to $257. Higher-income beneficiaries will pay significantly more.

Other parts of Medicare bring mixed news. The Part A hospital deductible increases, while Part D drug coverage adds a new $2,000 annual cap on out-of-pocket costs, which should help heavy prescription users. Medicare Advantage (Part C) plans remain relatively inexpensive, averaging about $17 per month, though their cost-sharing limits are rising.

---

Why Costs Keep Rising

Several common forces are pushing premiums upward across different health systems:

• Inflation and higher labor costs in hospitals and clinics
• Expensive new treatments and specialty drugs
• Increased demand as people catch up on delayed care
• Market consolidation, which leaves fewer insurers and providers, reducing competition

---

Looking Ahead

The trajectory for 2025 is clear: health insurance is getting more expensive worldwide. Switzerland faces steady but manageable growth, while the United States is grappling with sharper increases, especially in the ACA marketplace. The policy decisions taken in Washington over the next year—particularly around subsidies—will have a huge influence on whether coverage remains affordable for millions of Americans.