ACA Is Getting Less Affordable In 2017

ACA Is Getting Less Affordable In 2017

Obamacare is projected to become more expensive in 2017. One change to be expected in the coming year is individual deductibles, which will increase by over $6,000. Families who have been placed in bronze plans will have deductibles which average $12,393. However, these are just a few of the price increases which are expected.

Premiums And Deductibles

The deductible is the cost that an individual is expected to pay for their healthcare out of pocket before the insurance company will handle the remaining fee. The premium is the monthly payment that is made for health insurance. Research has shown that the average cost for premiums each month for bronze plans will rise by over 20 percent nationwide, particularly for those that do not qualify for the ACA subsidies due to their higher income.

For instance, a customer who is forty years of age that pays $289.88 per month in 2016 would see an increase to over $330 per month in 2017. Deductibles for the silver plan will cost an average of $3,572 in the coming year, which is a 15 percent increase over 2016.

Other Ways In Which Obamacare Subscribers Are Affected

Over 80 percent of people that purchase Obamacare on marketplaces which are government-run have salaries which fall into the low to medium range. They will typically qualify for subsidies which are designed to lower their premiums. They also receive assistance in lowering the costs they must pay out of pocket via co-payments, co-insurance and subsidies.

While the Health and Human Services Department has stated that more than 70 percent of customers will find insurance plans that will cost no more than $75 per month once subsidies are considered, there are still millions that don’t qualify for this assistance, either because their incomes are too high, or because their earnings are lower than one hundred percent of the poverty level.

Open Enrollment Leads To Tough Choices

When open enrollment begins this year, the choices for customers will be tougher and more limited. Some may not even be able to afford the available health plans. The ACA mandates that the majority of Americans need to have health insurance in some form or be liable to a fine that can be as high as 2.5 percent of the income they earn.

What is clear going into 2017 is that the conditions of the health insurance market are becoming increasingly worse. Nationwide, the increase for Obamacare is projected to reach double digits. Even the deductibles for silver or bronze plans, which are the most popular among those that do not have subsidies, will still be much higher than the funds that many families have reserved for medical costs.

Obamacare is split into multiple tiers, which are named gold, silver, bronze and platinum. While bronze plans often have premiums which are the lowest, its deductibles are also the highest. Silver plans feature higher premiums than bronze but the deductibles will be lower. Platinum plans provide the lowest deductibles of all but have the highest premiums.