Most consumers will be able to buy health insurance for $900 or less annually at HealthCare.gov starting November 1 even if marketplace rates increase by double digits, according to an analysis released Wednesday by the U.S. Department of Health and Human Services.
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In the wake of Aetna’s recent announcement that it was pulling up stakes in 11 of 15 states where it had been selling insurance on Obamacare exchanges, there are more alarming signs that other major insurers are struggling to remain in the game.
“Headline rate increases do not reflect what consumers actually pay”, Kathryn Martin, acting assistant secretary for planning and evaluation, said in a statement on Wednesday about the analysis. “Our study shows that, even in a scenario where all plans saw double digit rate increases, the vast majority of consumers would continue to have affordable options”.
Almost 1.1 million Texans are covered by plans purchased on the marketplace.
Fewer than 35,000 Tennesseans now pay the full cost of the marketplace plans without any subsidies.
Statewide, an average price increase of 43 percent is ahead for a popular type of middle-tier coverage used as a benchmark under the health law, the department said.
The increases for 2017 follow raises between 5 and 37 percent on such plans in 2016. It’s a concern for many hospital, physician and other health care industry groups. For the current year, he said, 91.5 percent of consumers on the exchanges received some sort of subsidy.
■More than 36 percent of Michiganians who returned to purchase health insurance past year at HealthCare.gov switched plans, saving an average of $45 per month.
Cohen also encouraged people to shop around for plans as a means of keeping costs down.
“We know that shopping around during open enrollment plays a very important role for consumers”, Martin said during a conference call with reporters.
Greenberg said 2017 price hikes in the Texas market could vary widely across the state, with rural markets likely to see the biggest changes.
However, next year in Tennessee, 57 counties will have only one health insurer and only 38 of the state’s 95 counties will have more than two providers.
As insurance companies in Dane County and throughout the state and the country adjust to the realities of the Affordable Care Act exchange, or online marketplace, many are proposing double-digit rate increases for next year.
HHS officials said that even large one-year price hikes and the decision by Aetna, one of the largest USA health insurers, to withdraw from the insurance exchanges, will not prevent most Americans from buying reasonably priced coverage. BlueCross will announce next month whether it will continue to participate in the marketplace exchange in 2017.
And most OH consumers shopping the exchange at HealthCare.gov will not pay significantly more next year, despite headlines again projecting double-digit rate increases, according to Kathryn Martin, HHS’ acting assistant Secretary for planning and evaluation.
“It’s very unfortunate that the major structural flaws in the Affordable Care Act are forcing higher rates and harming the IL families who need coverage the most”, Rauner said.
Still, high-profile defections, including plans by United Healthcare and Aetna to withdraw from marketplaces in OH and other states next year, have narrowed consumers’ choices. That represents only about 4 percent of all Tennesseans.
The end of the ACA’s temporary reinsurance program in 2016 puts upward pressure on 2017 rate increases that won’t exist for 2018 and beyond.
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Although insurers still have a month before they need to finalize their plans for participation in the marketplaces, they should have filed their final rates by August 23.
