Health Insurance Premiums Expected to Rise

Inflation has been on the rise for some time now, and it doesn’t look like it’s going to be slowing down anytime soon. The rising costs of gas and groceries have been tough on many Americans, and as if that wasn’t enough, health insurance premiums are now expected to increase, as well. The reasons for the increase include the effects of the pandemic, shrinking tax credits, prices set by drug manufacturers, and other health care costs. And unless Congress extends the expanded subsidies for Marketplace coverage, premiums could increase by 50% for some. Don’t panic yet, though:  there are ways that you can save.

Tax Credits Disappearing

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The American Rescue Plan Act was approved for only 2 years, which means tax credits are coming to an end next year. 

The American Rescue Plan Act, which was signed into law in March 2021, allowed Americans earning any amount of money to enjoy tax credits or premium subsidies, and also capped the amount that anyone pays for premiums at 8.5% of their income. Unfortunately, though, Congress put a two-year limit on these provisions, and at the end of this time, premiums are set to rise by more than 50% on average for people getting health coverage through a Marketplace plan.

“The default is that the expanded subsidies will expire at the end of this year,” said Cynthia Cox, a vice president at the Kaiser Family Foundation and director of its Affordable Care Act program. “On average, premiums would go up more than 50%, but for some, it will be more.”

And if Congress does not extend the expanded tax credits, only people with household incomes of 100% to 400% of the federal poverty level will qualify for subsidies.

Increases in Drug Prices

What’s making the problem worse is that the prices of new drugs in the U.S. have climbed for more than a decade. According to a research letter published in the Journal of the American Medical Association, the launch prices of new brand-name drugs increased by nearly 11% every year from 2008 through 2021.

Eric Linzer, President and CEO of the NY Health Plan Association, says state legislatures are also contributing to higher premium costs, specifically with bills that prohibit any kind of change in health plan formularies (or the list of prescription drugs covered by insurance plans). For example, Bill S.4111/A.4668 would prohibit health insurance plans from making mid-year pharmacy formulary changes, resulting in higher health insurance premiums and exacerbating the increasing cost of drugs. graph going upwards with a green arrow

In addition, several states have passed legislation that prohibits the use of copay accumulator adjustment programs (CAAP), or accumulator adjustment programs. These programs seek to reverse the impact of manufacturer cost-sharing assistance for prescription drugs by not counting the manufacturer assistance amount towards a patient’s deductible and out-of-pocket maximums. If the co-pay assistance is not counted against the patient’s deductibles and coinsurance amounts, it will drive up the patient’s health care costs overall.

“If we’re going to get those costs under control and make premiums more affordable for individuals and employers it’s important that policymakers look at what the underlying costs are. 82% or more of the premium dollar goes to pay for doctors visits, hospital stays, prescription drug costs,” said Linzer.

Find Affordable Health Insurance

Even though health insurance costs are rising, it doesn’t mean you can’t find an affordable plan that provides the coverage you need. And remember, it’s always better to get a plan before an accident happens, or a chronic condition develops or worsens.

EZ provides you with easy, instant, accurate quotes with no strings attached. Your own personal advisor will provide you with instant quotes and a comparison of all the other top plans available. Not only will you save time and money, but you also won’t have to pay us a cent for our services. We have the technology and network to cut hours of time spent comparing plans down to seconds. When you visit our site, you’ll leave with complete details and comparisons from dozens of plans available to you. These come from our team of experts, who filter all insurance plans to find the most suitable to your health needs and budget. 

Don’t waste any more time missing out on savings! To get your instant quotes, enter your zip code in the bar above, or to speak to an agent, call 888-350-1890.

Do You Qualify For The Small Business Health Care Tax Credit?

If you offer health insurance to your employees, it can be costly, but luckily there is a silver lining- the small business health care tax credit! One of the provisions of the Affordable Care Act, ACA, is the Small Employer Health Care Tax Credit which allows certain businesses to save money while offering health insurance to their employees. While it is a great financial saver for businesses, not all businesses can get the tax credit. There are some qualifications that a small business must meet in order to get the health care tax credit.

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You must meet certain qualifications in order to receive a tax credit.


The Small Business Health Care Tax Credit

This credit allows small businesses to receive a tax credit for paying at least half of their employees health insurance premiums. In the beginning, the small business health care tax credit was not much, ranging only 35% of eligible health insurance premiums. But luckily, over the years it has changed. The tax credit now equates to up to 50% of employer-paid health insurance premiums. 

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The tax credit now equates to up to 50% of employer-paid health insurance premiums. 

Small business owners cannot take the tax credit for insurance premiums paid on their own behalf. This includes partnerships, and sole proprietors. 


In order to qualify for the health care tax, a business must meet the following criteria:

  1. Have fewer than 25 full-time employees.
  2. Your average employee salary must be less than $54,000 as of the 2019 tax year. 
  3. You pay at least 50% of your full-time employees health insurance premiums, also known as a “qualifying arrangement.”

Flexible Credit

An advantage of having this kind of credit is that it is flexible. It can be carried toward the next year, or back to other tax years. So, if your business does not owe tax in a certain year, then claiming the tax credit will not do you any good. However, if you owe tax for a prior year, you can apply your credit to that. Or you can choose to keep the tax credit and save it for next year.

Claiming the Tax Credit

The health care tax credit can be calculated and claimed using the Form 8941. The form must be attached to the business’s tax return, and then after it is processed, the credit reduces any income tax the business owes.

Tax-exempt organizations should file Form 990-T. This tax credit is non-refundable, although it can be carried towards either the following or prior tax years. Also, tax-exempt organizations that have no taxable income can qualify for a refund of the credit, as long as it doesn’t exceed their Medicare tax liability and income tax withholding.

calculator and pen on top of a sheet with numbers on it.
If your business does not qualify for the tax credit, there is still hope on saving money with tax deductions.

Small Business Tax Deductions

If your business does not qualify for the tax credit, there is still hope on saving money. There is a deduction for employee premium payments. Some businesses may be able to get both the deductions and tax credit!

The small business health care tax can help a small business offer their employees health insurance without fearing the great costs. As long as you meet the qualifications to receive the tax credit, then you will be eligible. The fewer employees you have, for example, less than 10 full-time employees who are paid an average of $25.000 or less will get you a bigger credit. And if you do not qualify for the tax credit, at least you can get deductions!

If you are looking to provide health insurance to your employees and want to save money, EZ.Insure can help. We will find a plan that meets your needs financially. We will find the plan that gives you deductions and notify you on whether you qualify for both deductions and the tax credit. Our goal is to save you as much money, while providing you with the best plan. Call 888-350-1890, or email us at to speak directly with one of our agents, or enter your zip code in the bar above to get free instant quotes. We will never sell your information to telemarketers as others do.