Will my Obamacare Premiums increase?
The Patient Protection an Affordable Care Act (PPACA or ACA) known as Obamacare was designed to cover Americans that don’t have access to affordable Health Care or are unable to get insurance on the open market because of a preexisting condition. This subject is very politically charged so I’m going to answer from an angle of an insurance broker.
Every day I get up and talk to as many people as I can about the downside of not having insurance. I preach the bankruptcy statics with health insurance by stating over 1.5 million people file bankruptcy because of Health related medical bills. I tell them 56 million even with medical insurance struggle with medical bill payments. In short, my position is and will always be any action taken to cover more people is a step in the right direction. The Affordable Care Act’s marketplace is a derived market where insurance companies essentially compete to win consumer’s business. All of the market place plans have 10 minimum Essentials benefits. Those benefits which I recommend every potential customer is educated about can be of immense benefit to themselves and their family. Those great benefits however mean that the plans can be more expensive then say a plan that didn’t have those benefits. Clients who join Obamacare are less healthy on average than the rest of the population. Those two things combined translates into the premiums in the market place will most likely increase. The increased premiums don’t tell the entire story. Since the majority of the people on the market place receive a subsidy—86% to be exact—the effects of the increase will be felt at a much lower rate in terms of actually dollars spent by the consumers.
In conclusion, there will be a rise in Obama Care premiums in some of the most popular silver based plans but only in certain cities. The increases are also subject to only certain Insurance companies. The rise in rates can be anywhere between 10% to as high as 26%. It is also important to note that certain areas will also see a decrease in insurance rates in those same plans. Quick recap:Increases will happen mainly in certain plans (silver level plans)
- Those increase can be with only certain companies
- Those increases are mainly in certain areas
- Certain Areas will see decreases
- Because such a large percentage of the Marketplace receives subsidies the increases may not be felt by the public in terms of actually dollars
- This only affects the 10% of the public that are on the exchanges. Employer based plans will not see increases