ACA Premiums Expected to Increase in the Next 3 Years

///ACA Premiums Expected to Increase in the Next 3 Years

ACA Premiums Expected to Increase in the Next 3 Years

A new report published by California’s insurance marketplace found that premiums for Affordable Care Act health plans are expected to increase within the next three years. The analysis was conducted nationwide and found that the insurance premiums will most likely increase by 35% to 94%. Although there is a variance between states on the increase amounts, the report found that the increases are most likely due to recent federal activity. 

The biggest factor in the increase on the ACA health plan premiums is the removal of the penalty of not requiring health coverage. In 2019, Americans are not required by law to have health insurance coverage. This change attributes a 7% to 15% increase in ACA health insurance premiums within the next year.

Another contributing factor to the rise of ACA health insurance premiums is the shortened time for ACA health plan sign-ups, enacted by the Trump Administration. Efforts for the marketing and promotion for ACA health insurance plan enrollment has been cut back as well.

Although ACA health insurance plan premiums are expected to increase, the ACA does provide federal insurance subsidies, which will assist working class and lower middle class consumers. Those not assisted with subsidies will sustain a hardship in being able to afford their health plans.

The premium increases are expected to be the highest (at the most 94%) in conservative states where there is no assistance from regulators to remove the low coverage health plans promoted by the current administration, known as associated health plans.

 

Read the original article from The Washington Post here.

By | 2018-03-27T10:19:29+00:00 March 13th, 2018|Articles, Government Mandates and Compliance|0 Comments