Be prepared for a big jump in the cost of Obamacare for 2017. For the estimated 20 million Americans who are enrolled into the Affordable Care Act or state plans, they may see increases in the high single digits to even over 10%. Many of the current enrollees may not be planning on this increase for 2017, but they should start to be aware of it now.
There are many reasons for this expected increase. One of them being that the number of health insurers that participate is decreasing. In fact, the nation’s largest carrier (United Health Care) has decided to pull out of the entire ACA program. The company is doing this as they are losing money from those patients who are enrolled into Obamacare.
The number of health insurers is also decreasing because many of the companies have shut down. Dozens of health insurance companies, some of which were government subsidized, have closed their doors as they could not make the business model work. This reduces the competition that is available in the marketplace during 2017, which often translates to higher rates.
Obamacare insurance rates may also go up by over 10% due to the cost of medical care, in particular prescription drugs. People are demanding more expensive treatments for their needs. Some medications can now cost over $1000 per pill for certain diseases. This will of course result in higher premiums for all.
Other medical costs are also going up by high single percent each year. Many health insurance companies were in fact undercharging their customers over the last few years. They were new to the Affordable Care Act and all its policies, so they did not price properly. With the constant increase in prices facing consumers, more need help. We have a listing of resources that show patients how to get medical bill help.
Now during 2017 it is expected that the underbilling that happened in the past will “catch up” to current reality. The fact is that the underlying cost of medical care is accelerating once again due to an older population, more people abusing the system by requesting unnecessary tests, and people not caring for their own wellness.
How to offset 2017 Obamacare increases
The solutions for enrolless are limited. They can continue to search for another provider, but there are less to choose. Or they can look for a new job with better benefits, such as private insurance. But more companies are also pushing additional expenses to their employees. But the good news is the job market is very strong, and the chance for a new, higher paying job with better benefits in 2017 is higher than ever. Read affordable health insurance policies.
Some health insurance providers also operate wellness plans. These will provide their customers with discounts ranging from a few percent to as much as 10% on their monthly bills. The person will need to apply and generally agree to some basic medical check ups. Then, based on those results, there will be wellness plans put into place that encourage exercise, healthy eating, and the like.
Also, the more notice anyone has to the expected increase, they can start to budget for it. This means saving money to account for higher insurance costs during 2017. They can review their current household expenses and see where a few dollars can be cut. The more notice to a potential 10 percent increase, the better. So start preparing for higher Obamacare rates now for 2017.