The health insurance open enrollment season for 2017 begins November 1st. There have been a lot of rumblings in the media about large health insurance premium increases for 2017. So, if you’re wondering what your premiums are going to be for the upcoming year, and what you can do about it, let’s take a look at some things you should know about the cost of health insurance.
Yes, may be premiums are increasing for some, but they went down first.
First, it’s important to know that projected increases do not affect everyone, and are, on average, much smaller than you think. So the first thing you’ll want to do if you love your current plan, is to check with your carrier to see if your monthly premium will be rising so you know where your plan stands.
If we take a look back, we’ll see that the increases we are experiencing, are all a matter of perspective. A study by Brookings found that when the Affordable Care Act (ACA) launched in 2014, premiums decreased between 10 – 21 percent across the board from what they were in 2013, while increasing enrollees’ benefits. That means that even though premiums have gone up over the past two years, they’re still lower, on average, than what they would have been absent the ACA, and you’re still getting more for your money. In fact, Affordable Care Act premiums would have to increase approximately 44 percent this year just for prices to catch up with the trajectory we were on prior to the ACA.*
You’re still likely saving money.
Under the ACA, health insurance plans are required to provide more comprehensive cover than they did in the past. So with today’s plans, you’re getting more for your money. For example, it’s estimated that the average annual healthcare spend for a plan that covered 60 percent of healthcare expenses was $3,480 in 2009. The same premium in 2014 for the second-lowest-cost silver plan was about $3,800. Yes, this is a 9 percent increase, but a silver plan covers 70 percent of expenses, the ACA silver plan a more affordable and valuable option.*
Shop around during open enrollment to find the best premium.
Some carriers (UnitedHealthcare, Humana and Aetna to name the larger players) have dropped out of the marketplace, so for some shopping around isn’t an option, it’s a necessity. But even if your plan is still around for 2017, you should make sure it still works for you. You’ll want to check to see if your premium and deductibles have changed and whether your doctors and prescriptions are still covered in your network.
New plans are introduced each year as well, giving you another reason to see what’s being offered for 2017. If your premium has gone up, there’s a good chance that there may be a different plan from another carrier that suits your needs just as well, and will cost you less. Comparing plans doesn’t take a lot of time and could be well worth it in the end.
The tax penalty.
If you choose to remain uninsured, you may have to pay a tax penalty when you file your taxes. The fee is calculated in two different ways: (1) as a percentage of your household income or (2) a per-person penalty. You’ll pay whichever of the two is higher. In 2016 the penalty was either 2.5 percent of household income, or $695 per uninsured adult and $347.50 per child under 18, with a maximum fee of $2,085. The penalty for 2017 hasn’t been announced just yet, but it’s set to increase with inflation.
If you have questions or need help at any point during the enrollment season, our licensed agents are ready to help you find a new plan for 2017. Just give us a call at (866) 602-8466.
*https://www.brookings.edu/research/affordable-care-act-premiums-are-lower-than-you-think/
