Obamacare premiums are rising drastically due to a number of reasons. The healthcare premiums were too low for all of the people with health conditions who signed up, costing insurance companies too much money. Insurers aren’t able to afford all of the people with health conditons, forcing them to have to raise premiums immensely. Insurance companies also have to cover preexisting conditions and offer more comprehensive plans. These comprehensive plans cost more and cover a lot more too, making it a good deal for people who have to visit the doctor regularly, but costing the insurance companies more. In comparison to when the health law was first put into effect, individual plans are costing more than health insurance companies expected.
Aetna, United Healthcare, and Humana are scaling back their participation in Obamacare and only offering coverage in a handful of states. This means there are fewer choices for health coverage, which could make premiums rise even more.
Many state’s insurance companies are receiving high increases from the state insurance commissioners. Insurance companies are having to raise their premiums by double-digit percentages as a result. Some are receiving premium hikes up to 67 percent.
Approximately 85 percent of Americans receive federal subsidies to help with the cost of health insurance plans. But about 10 million Americans buy health insurance plans on or off the marketplace and do not receive any federal subsidies to lower the cost. With premiums rising, many people are angry about the change because they are paying full price. Some premiums have risen to $1,200 a month with a $6,000 deductible, making it impossible for a lot of people to afford.
Those who are eligible for subsidies are protected against increases in Premiums. But those who are not eligible will be paying a lot more.
The ones who are struggling the most are those who barely miss being eligible for tax credits or federal subsidies. Some are paying up to $14,000 a year for health insurance, or a quarter of their annual income. Shela Bryan is one of the many struggling to afford her health insurance. Read Shela Bryan’s personal story here.
At LifePlan Financial, we pride ourselves on our quality work, our honesty to our clients, and the reliability we provide. Getting health insurance doesn’t have to be a hassle when you use LifePlan Financial. Contact us today for any questions or get a quote to get started.