Obamacare โขPremiums Surge, Delivering post-Halloween Shock to Health Insurance Shoppers
WASHINGTON, nov.1, 2023 – Americans seeking health insurance coverage through the Affordable Care actโฃ (ACA) marketplaces โare facing a stark reality: premiums are doubling for many, adding a financial fright to the post-Halloween season. The increases, impacting a significant portion of those not receiving โgovernment subsidies, threaten to price individuals โand families out of the health insurance market as open enrollment begins.
The premium hikes are largely attributed to the expiration โof enhancedโค subsidies enacted during the pandemic, coupled with rising healthcare costs and aโ shift in the risk pool. โคWhile over 90% of ACA enrolleesโค are shielded from premium increases thanks to financial โขassistance from the Inflation Reduction Act, the roughly 5% who don’t qualify for subsidies โare bearing the brunt of the changes.This disproportionately affects middle-income Americans who earn too much to receive assistance but still struggle to afford coverage.
“This is a significant blow to thoseโ who don’t qualify for subsidies,” explainedโค Karen Pollitz, a senior fellow at the Kaiser family Foundation. “They’re seeing their premiums โคessentially double overnight, and that’s a really tough situation.”
the Kaiser Family Foundation analysis of preliminary data โขfrom 15 โstate-basedโฃ marketplaces and the federal exchange showsโ that โขunsubsidized benchmark premiums are increasingโ by an average of 7% in 2024. However, the impactโ is far more dramatic for those who previously benefited from the expanded subsidies. In โคsome states, premiums for โthe benchmark plan have more thanโ doubled, forcingโค consumers to re-evaluate their coverage options.
Open enrollment for 2024 plans begins November 1st and โruns through January 15th in most states. Consumers are urged to shop around and compare โขplans, as well as explore โpotential eligibility for cost-sharing reductions or other forms of financial assistance. The ACA marketplaces remain theโข primary โฃavenue for millions of Americans to โaccess affordable health โinsurance,but the rising premiums underscoreโ the ongoing challenges of balancing โaffordability and access in the U.S.โค healthcare system.
