Health Plan Costs Will Go Up

Health Plan Costs Will Go Up

Enrollment season for the Affordable Care Act is going to start soon. For the fourth year in a row, you can go to HealthCare.gov and sign up for affordable healthcare. However, those signing up might find out that they have to pay more for a health plan starting with 2017. The premiums for health plans that are mid-level are going to go up by 25 percent on average. Next year is when we’re going to see the increase in health plan premiums. Also, another problem facing those trying to sign up is that there are fewer insurance companies that are offering coverage.

Enrollment Season for Healthcare

Between November 1 and January 31 is enrollment season for health plans under the Affordable Care Act. Those who are not yet covered can sign up now and finally get the healthcare coverage that they need. In its fourth year, enrollment is expected to go up by 9 percent this season. But there are still issues facing the Affordable Care Act program.

Medium level health plans are going to be more expensive starting next year. But, according to the Obama administration most consumers are still going to be able to find the affordable plan they need. Their estimates say that three fourths of consumers will be able to find a plan for less than 100 dollars each month. However, that is only possible with help from federal subsidies.

The enrollment period for the federal health law starts on November 1. Since the rules are going to change starting next year about going without insurance, it’s a good idea to get healthcare coverage. Next year, consumers that don’t have insurance could be facing tax penalties. The price of not having insurance could be 700 dollars a person or even more.

Fewer Choices for Consumers

This Monday, consumers got a first look at the choices available to them, even though enrollment starts later. To some, it looks like this year there are fewer options available to those who want to sign up.

The Affordable Care Act program is facing rising costs. It’s also dealing with shrinking options. That means that the next president is going to have to make significant adjustments to the federal health law. So far, both Hillary Clinton and Donald J. Trump have made promises to work on the law when they get in office.

The increase of 25 percent in premiums is the most significant the program has seen. The increase for 2015 was just 2 percent. Whereas the increase for 2016 was 7 percent. The rise in health plan costs is going to be difficult to ignore. But the alternative of insurers backing out would have been worse. In many states, major insurers pulled out of the marketplace. The reason that they gave was losses of many millions of dollars. So state officials had to approve rate increases for those insurers that remain.

Even so, there won’t be much choice for those looking for a health plan this enrollment season. One in five consumers visiting the website for federal health insurance HealthCare.gov is going to find just one insurer with a health plan for him or her.

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