Obamacare Premiums Make Major Jump

Obamacare

What: The US gov released reports discussing Obamacare’s rising premiums.

When: The reports were released earlier this week about higher premiums to come in 2017.

Details:

Overall, it’s shaping up to be the most difficult sign-up season since HealthCare.gov launched in 2013 and the computer system froze up.”

 (Read full article here.)

 

Comforting…

It’s not exactly breaking news that insurers are losing millions of dollars due to their participation in Obamacare. Major carriers like Aetna, Humana, Cigna, BlueCross BlueShield and UnitedHealthcare are either opting out of offering individual coverage through the marketplace or have been approved rate increases up to 62%.

Reports released earlier this week indicate sharp premium increases (25% average increase) and declining numbers in participating insurers. In fact, nearly 1 in 5 consumers will now only have a single option of insurer to receive coverage through. This article further breaks down the increases per plan.

In some states, premium prices could increase by double digits. In one case reported in Arizona, the premium for a 27 year-old buying the “second-lowest cost silver plan” will jump from $196.00 to $422.00.

Window shopping for plans and premiums is already available on HealthCare.gov, however the number of insurers on the site will drop from 232 to around 167 (more than a 28% percent loss). Switching insurance plans may be difficult for multiple groups of people, such as those with chronic conditions.

It’s suggested that one of the reasons Obamacare is having trouble is due to lower than anticipated enrollment rates and patients that turned out to be “sicker than expected”. President Obama has stated these current problems “are only growing pains”. The program prohibits insurers from turning away the sick, offers subsidized private plans to people without Obamacarecoverage through their jobs, and provides a state option to expand Medicaid for low-income consumers.

To end on a positive note, the nation’s uninsured rate has decreased below 9%, which is a historically low level. Since the Affordable Care Act was passed in 2010, more than 21 million people have gained coverage.

Also, now that you’re educated… Check out this Jimmy Kimmel video that will make you feel much better about understanding these rising premiums (and will provide a good laugh).

If you have any concerns or questions about how these future changes might affect you, please call our office to discuss with an expert at 865-777-0153.