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Healthcare Rates to Rise in 2019

In 2017 when President Trump did away with cost-sharing subsidies, it forced insurers to raise premiums. The cost-sharing subsidies helped pay back insurers for giving customers lower premiums due to their income status. Due to the halt in the subsidies, health-insurance premiums have been rising for those who have to buy their own insurance, approximately 34% in 2018 for silver plans. Insurers are now brainstorming what they will charge and if they want to participate in the ACA exchanges for 2019.

Insurers have been participating less and less in the market exchange, leaving customers with fewer choices. If more insurance companies decide to pull out of the exchanges, it will mean that customers will have even fewer choices available to them, at higher costs.

Premiums will continue to keep growing without the cost-sharing subsidies to help with the costs impacted on insurers. The hike in premiums could be as much as 30% for 2019. It is projected that those that will be impacted the most are those who make too much money to qualify for premium support subsidies.

Eyles and Ceci Connolly, president and CEO of Alliance of Community Health Plans both voiced their disappointment of Congress failing to take action to fund cost-sharing subsidies.

“What’s happened is that several pieces of the puzzle have been pulled away. It is hard for me to isolate CSRs, what we are looking at now is a puzzle that is falling apart piece by piece,” Connolly said. “Losing the individual mandate, losing the cost sharing reduction subsidies and losing any hint of reinsurance, not to mention the risk corridors that were already gone, you’re just running out of options to manage the cost of this program.”

Midterm elections are approaching which brings up the issue of health care. While both political parties will be criticized, the polls have shown that voters hold Republicans more responsible for the high costs. Both parties have come to an agreement to include health insurance funding in the spending law, but could not agree on the details of what to fund exactly. Republicans are pushing for abortion restrictions stating insurers can cover abortions but cannot use federal funding for them, while Democrats do not agree.

Lawmakers are hoping the stabilization effort of adding funding to the bill to offset the costs of insurance, but health-policy experts disagree on how much it will help. Health experts state that the higher premiums will be offset for people by other subsidies they will be qualified for.

Republicans are not thrilled to stand behind the idea of the stabilization funding because they view it as saving the insurers of a health law, ACA, which they promised voters they would repeal. They blame the ACA’s regulations which stopped competition and drove up premium costs. Congress is leaning towards unlikely passing the stabilization bill.

Insurers are expected to announce the premium price hike sometime in the fall.

Plans Rates to Increase in 2018: Silver Costing More than Gold

Plans will be at least 34 percent higher in 2018 due to Trump’s decision to halt cost-sharing subsidy payments to insurers.

Because the Trump administration ceased these cost-sharing payments to insures, insurance companies raised premiums to compensate for the loss of these reimbursements. This termination of subsidies has also caused some insurers to drop out of the marketplace, leaving regions with only one insurer.

The changes

Silver plans pay for about 70 percent of customers’ health costs, with the remainder of payment left for the customer. These plans are purchased by nearly 80 percent of customers. The cost of silver plans is increasing an average of 34 percent next year.

Bronze plans, the second most popular plan, covers 60 percent of customers’ health costs. These plans are purchased by about 23 percent of customers. The cost of bronze plans is increasing an average of 18 percent in 2018.

Gold plans are usually the priciest, covering 80 percent of customers’ health costs. These plans are purchased by about 3 percent of customers. This year, the cost of gold plans are increasing an average of 19 percent.

Platinum plans are the most expensive plans, covering 90 percent of customers’ health costs. These plans are purchased by less than 1 percent of customers. The cost of platinum plans is rising by an average of 24 percent next year.

Gold plans usually have higher monthly plans and lower out of pocket costs than silver plans, but that has now changed. Now silver plans are more expensive than the gold plans that have lower deductibles.

Who this will affect

Customers who will be affected by these price increases are those who must purchase Obamacare because they do not have insurance through employers or Medicare. People who qualify for government subsidies will benefit from the premium increase of silver plans. As the premium increases for next year, enrollees will receive higher premium tax credits, allowing them to have a plan with a lower deductible, copays, and less out of pocket spending.

However, people who do not qualify for government subsidies will have to pay more for a silver plan. The least expensive gold plan for next year will be cheaper than the least expensive silver plan. So many people will probably opt to purchase the bronze or gold plan next year.

If you make more than the poverty line, in some states, a gold plan will cost less and have a lower deductible. Also, a high deductible bronze plan will have lower premiums. For example, a 40-year-old individual making $30,000 and eligible for a tax credit will pay 54 percent less in 2018 for their premium of the lowest-costing bronze plan, 9 percent less for the lowest-costing silver plan, and 16 percent less for the lowest-costing gold plan.

Gold plans are a better option in some states such as Pennsylvania, Wyoming, New Mexico, Kansas and Texas. Below is a map of highlighted states where gold plans are lower than silver plans by $25 or more.

Need Help?

Comparing plans for the upcoming year, and choosing one can be difficult. EZ.Insure can help you compare all the plans in your area, and assist you in choosing the ideal plan. Whether gold or silver is the cheapest, or bronze or platinum will suit you, EZ.Insure will make it an easy decision. Enter your zip code in the bar above to receive instant quotes in your area. You can also email replies@ez.insure or call 888-350-1890 to get started!

Senate GOP Planned on Getting Rid of Healthcare Mandate, With No Success

Republicans have been working to get rid of the individual mandate from the Affordable Care Act. The reason is to not only save the government money, but to “provide more tax relief to middle class families.” However, they have failed repeatedly to get the tax reform bill passed, leaving the mandate applicable, and the penalty that follows if it is disregarded.

The individual mandate is the requirement for people to buy health insurance or pay a fine. This was intended to have people buy coverage, especially those that are healthy, in order to keep insurance costs lower for everyone. When healthy people are part of the insurance pool, it helps fund the treatment costs of sicker people.

The Congressional Budget Office estimates that by repealing the mandate, the government will save about $330 billion over the next ten years. The money the government would save is the money spent on insurance premiums because people would drop their insurance or opt out of having one. The Congressional Office also estimates that there will be 13 million people uninsured in the following ten years. Without the mandate, fewer people will sign up for insurance, especially healthy people. What will then happen is the costs of treatment for the sicker people would sky rocket.

There have been many arguments as to whether the mandate encourages or discourages people from buying health insurance. Republicans argue that the mandate discourages people from buying insurance that costs just as much as the penalty they would receive if not being insured. But, studies have shown that more Americans over the years have been signing up for insurance because of the law. Paying a penalty that can cost more than paying for insurance is poor financing and illogical.

Republicans claim that repealing this mandate would mainly help the middle class. “Eighty percent of the people who pay the mandate tax make less than $50,000 a year, and a third of those who pay the tax make less than $25,000 a year,” said Sen. John Thune. However, the issue is that the ones who will suffer the most are the middle class. When premiums increase even more, only those who qualify for subsidies will be able to afford coverage. People who earn too much to qualify for a subsidy, and want to buy insurance will have a hard time with medical costs, because coverage will be too expensive.

There is some support behind the mandate repeal amongst Americans, while others think it’s a bad idea after hearing that many Americans will be uninsured, causing premiums to rise. Despite the support or lack of from the American people, the mandate is here to stay and you will be penalized if uninsured.

Get Help Making Sense Of All Of This

The Senate’s continuous failed attempts prove that this reform bill will not pass, leaving the individual mandate the current law. If you do not sign up for health insurance, you will pay a penalty up anywhere from $695 to $2,085. It is important that you teach an agent to find a plan as soon as possible. EZ.Insure’s agents are highly knowledgeable about all the plans in your region. You will be assigned your very own agent that can help you compare plans and pick which is best for you and your family at an affordable price. No bouncing from agent to agent. Contact one now at replies@ez.insure. To get an instant quote, you can enter your zip code in the bar above. Do not wait and end up having to pay a penalty that could cost more than monthly premiums.