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Large ACA price increases expected for 2017.


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Kaiser and NYT are both reporting that the ACA insurance premiums will have a big jump next year. The article lists the reasons but the main factor is that insurers need to price plans a year in advance and they have had no reliable historical data for pricing under the ACA. The hope is that this round of price increases will add stability to the markets and moderate future price increases. They are selling this as a one time catch up. Last year the average price increase was about 4% (individual experiences varied widely). What I have not yet seen addressed is whether the pricing pressure will continue the trend of reducing PPO choices which are critical for us under 65 Escapees. The implications of the next election cycle are not discussed but they most likely would not cause any changes until 2018 at the earliest as 2017 policies will be set at the time of the election. http://www.nytimes.com/2016/05/07/upshot/get-ready-for-higher-obamacare-rates-next-year.html?_r=0

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We gave in and got insurance via the ACA marketplace. We were able to sign up after the usual deadline because of a significant life event (marriage and left our jobs). We weren't thrilled with the options (to say the least), but those PPO plans did seem to be the best bet so we could simply afford to be covered. Should something catastrophic occur, it's nice to know we have some protection, but we probably will never use the coverage because of the high up-front deductible. I guess it beats being fined next tax season...depending how much rates go up next year.

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I have mentioned this before but if people are approaching 65 and (working or not) have cash savings available, one thing you can do to maximize, or become eligible for, a subsidy for is to give the max amount to an IRA. This reduces your income for purposes of calculating the IRA and for many of us under 65 we can soon withdraw that money without penalty. I am 57 so contributing money to an IRA account I can withdraw at age 59 1/2 is a no brainer.

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I have mentioned this before but if people are approaching 65 and (working or not) have cash savings available, one thing you can do to maximize, or become eligible for, a subsidy for is to give the max amount to an IRA.

 

I don't understand your "working or not" qualifier. If someone isn't working and therefore doesn't have qualifying income, he can't contribute to an IRA.

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This doesn't have much to do with ACA, but shows the increases currently taking place.

We are still insured under my previous employer's Enhanced PPO program (Anthem) and new selection

options take place every July 1st. We just received notification of next year's premium increases. Up another 7.1%

for the two of us.

The deductibles are low and the coverage has been great, so we'll "stick it out" for another season at least.

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It's not that anyone should be surprised by the coming rate increases. United Health Care, the nations largest insurer, is pulling out of 34 states, Humana is threatening to do the same. More than half of Obamacare approved co-ops have gone belly up. With less competition, comes higher premiums. In Va., Aetna will have rate hikes averaging 13%, Inova 16.6%. And if you're unlucky enough to live in Or., some will see rates going up by 27% to 32%. And it looks like they'll get away with the huge increases because the vast majority(85%) are receiving TAX PAYER funded subsidies, which will just add to our national debt. It's going to be interesting to see if the Affordable, now there's a misnomer, Care Act will be able to survive the coming election.

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