CNBC Monday October 25th 2015
Healthcare Premiums for 2016
“Up, up and away”
Starting next week we will see the new premium rates for exchange offered healthcare insurance plans. In general rates are going up, in some regions double digits some less aggressive. But the bottom line is that the plan for everyone’s insurance premiums to decrease by $2,400 per year (as discussed by the white house prior to the passing of the ACA [Obamacare]) is far from fruition.
Shopping around is vital for consumers to do as the web capabilities offer this means of comparison so compare and contrast costs vs. benefits.
Uninsured consumers have dropped to 9% boasting at least one successful aspect of the ACA. However things are not as smooth as proponents had anticipated, generating a real divided populous with many previously supportive consumers now experiencing a certain degree of “buyer’s remorse.”
Getting more specific, industry experts anticipate an overall increase in the high single digits to the low double digits. Given the state specific nature of the product, there will truly never be an “average premium.” Some examples however are a) Minnesota having five carriers participating in the exchange averaging from 14% to 49% increase in premiums. Certainly not the norm, but well worth noting. At the other end, b) California forecasts a 1.8% increase quite modest, but still up. Not the story we would expect to hear following the marketing campaign produced by the White House. Taxpayer subsidies will defray some costs but ultimately, the tax payer is “us” and the cost is transferred not eliminated.
Additional considerations should be the cost of deductibles and co-pays, which get higher as the consumer seeks to find a plan with lower monthly premiums. There is no way around it, these increases comes out of either the left pocket or the right pocket. Unfortunately, the consumer is wearing those pants. CNBC suggests that the consumer access the Healthcare.gov page and begin to explore options, now.
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