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U.S Health Insurance Costs are Rising at Shocking Rates
Since the end of the pandemic, Americans are visiting their doctors in vast numbers after putting it off for so long – unfortunately, this is resulting in higher health insurance rates across the country.
A recent review by Kaiser Family Foundation shows that 13 states, such as Washington D.C, are set to raise health insurance rates by 10% in the upcoming year as insurers and high inflation rates are driving premium costs up to recoup lost financial gain during the pandemic. Other states that will raise their rates include New York, Texas, Georgia, Vermont, Michigan, and Oregon, amongst others.
Executive vice president for Kaiser Family Foundation, Larry Levitt, states: “We’re at a point in the pandemic where people use health care that they may have put off before. We have a double whammy right now of people using more care and inflation throughout the economy.”
States such as California will increase health care premium prices by over 6% for their 1.7 million customers that benefit from the state program, Covered California, compared to the 1% or less increase seen in the past three years. According to Executive Director of Covered California, Jessica Altman, the increase in prices is caused by the high usage of the plans.
Additionally, over 14.5 million people used their state-covered marketplaces to purchase coverage, resulting in only a small percentage of insured people, as over 155 million Americans get their insurance from their employers. With the 2023 enrollment period just around the corner, people will need to buy individual health coverage plans, and the price paid will depend on various factors such as location and plan type.
The rate increases follow Congress’ pending decision of whether or not to extend financial aid to consumers through the $1.9 trillion economic aid package passed last year to battle the economic hardships of the pandemic (the American Rescue Plan). The rescue plan helped insurance companies keep their premiums low for people purchasing plans through the marketplace. For example, California alone received over $1.7 billion yearly to keep people from spending over 8.5% of their income paying their monthly premiums. That being said, if such aid ends, over 3 million Americans will most likely cancel or change their health plans due to how expensive they will be. Congress still hasn’t stated whether or not any assistance will be renewed, causing insurance companies to raise their rates.
Altman stated that failure to renew federal assistance would make it impossible for people to afford coverage. “The core outcome to be concerned about here. That would be a big step backward.”
While the price of insurance premiums may be daunting, Fulcro is here to help you navigate through all of the uncertainties of your health insurance premiums. We also provide innovative wellness programs that can help you and your employees manage rising costs and lower the risk of chronic conditions or long-term complications. To learn more about these programs or to find out if you’re getting the best health care premium option, contact our insurance specialists who will gladly assist you.