Health Insurance Archives - Page 52 of 52

Plans Rates to Increase in 2018: Silver Costing More than Gold

Plans will be at least 34 percent higher in 2018 due to Trump’s decision to halt cost-sharing subsidy payments to insurers.

Because the Trump administration ceased these cost-sharing payments to insures, insurance companies raised premiums to compensate for the loss of these reimbursements. This termination of subsidies has also caused some insurers to drop out of the marketplace, leaving regions with only one insurer.

The changes

Silver plans pay for about 70 percent of customers’ health costs, with the remainder of payment left for the customer. These plans are purchased by nearly 80 percent of customers. The cost of silver plans is increasing an average of 34 percent next year.

Bronze plans, the second most popular plan, covers 60 percent of customers’ health costs. These plans are purchased by about 23 percent of customers. The cost of bronze plans is increasing an average of 18 percent in 2018.

Gold plans are usually the priciest, covering 80 percent of customers’ health costs. These plans are purchased by about 3 percent of customers. This year, the cost of gold plans are increasing an average of 19 percent.

Platinum plans are the most expensive plans, covering 90 percent of customers’ health costs. These plans are purchased by less than 1 percent of customers. The cost of platinum plans is rising by an average of 24 percent next year.

Gold plans usually have higher monthly plans and lower out of pocket costs than silver plans, but that has now changed. Now silver plans are more expensive than the gold plans that have lower deductibles.

Who this will affect

Customers who will be affected by these price increases are those who must purchase Obamacare because they do not have insurance through employers or Medicare. People who qualify for government subsidies will benefit from the premium increase of silver plans. As the premium increases for next year, enrollees will receive higher premium tax credits, allowing them to have a plan with a lower deductible, copays, and less out of pocket spending.

However, people who do not qualify for government subsidies will have to pay more for a silver plan. The least expensive gold plan for next year will be cheaper than the least expensive silver plan. So many people will probably opt to purchase the bronze or gold plan next year.

If you make more than the poverty line, in some states, a gold plan will cost less and have a lower deductible. Also, a high deductible bronze plan will have lower premiums. For example, a 40-year-old individual making $30,000 and eligible for a tax credit will pay 54 percent less in 2018 for their premium of the lowest-costing bronze plan, 9 percent less for the lowest-costing silver plan, and 16 percent less for the lowest-costing gold plan.

Gold plans are a better option in some states such as Pennsylvania, Wyoming, New Mexico, Kansas and Texas. Below is a map of highlighted states where gold plans are lower than silver plans by $25 or more.

Need Help?

Comparing plans for the upcoming year, and choosing one can be difficult. EZ.Insure can help you compare all the plans in your area, and assist you in choosing the ideal plan. Whether gold or silver is the cheapest, or bronze or platinum will suit you, EZ.Insure will make it an easy decision. Enter your zip code in the bar above to receive instant quotes in your area. You can also email [email protected] or call 888-350-1890 to get started!

Senate GOP Planned on Getting Rid of Healthcare Mandate, With No Success

Republicans have been working to get rid of the individual mandate from the Affordable Care Act. The reason is to not only save the government money, but to “provide more tax relief to middle class families.” However, they have failed repeatedly to get the tax reform bill passed, leaving the mandate applicable, and the penalty that follows if it is disregarded.

The individual mandate is the requirement for people to buy health insurance or pay a fine. This was intended to have people buy coverage, especially those that are healthy, in order to keep insurance costs lower for everyone. When healthy people are part of the insurance pool, it helps fund the treatment costs of sicker people.

The Congressional Budget Office estimates that by repealing the mandate, the government will save about $330 billion over the next ten years. The money the government would save is the money spent on insurance premiums because people would drop their insurance or opt out of having one. The Congressional Office also estimates that there will be 13 million people uninsured in the following ten years. Without the mandate, fewer people will sign up for insurance, especially healthy people. What will then happen is the costs of treatment for the sicker people would sky rocket.

There have been many arguments as to whether the mandate encourages or discourages people from buying health insurance. Republicans argue that the mandate discourages people from buying insurance that costs just as much as the penalty they would receive if not being insured. But, studies have shown that more Americans over the years have been signing up for insurance because of the law. Paying a penalty that can cost more than paying for insurance is poor financing and illogical.

Republicans claim that repealing this mandate would mainly help the middle class. “Eighty percent of the people who pay the mandate tax make less than $50,000 a year, and a third of those who pay the tax make less than $25,000 a year,” said Sen. John Thune. However, the issue is that the ones who will suffer the most are the middle class. When premiums increase even more, only those who qualify for subsidies will be able to afford coverage. People who earn too much to qualify for a subsidy, and want to buy insurance will have a hard time with medical costs, because coverage will be too expensive.

There is some support behind the mandate repeal amongst Americans, while others think it’s a bad idea after hearing that many Americans will be uninsured, causing premiums to rise. Despite the support or lack of from the American people, the mandate is here to stay and you will be penalized if uninsured.

Get Help Making Sense Of All Of This

The Senate’s continuous failed attempts prove that this reform bill will not pass, leaving the individual mandate the current law. If you do not sign up for health insurance, you will pay a penalty up anywhere from $695 to $2,085. It is important that you teach an agent to find a plan as soon as possible. EZ.Insure’s agents are highly knowledgeable about all the plans in your region. You will be assigned your very own agent that can help you compare plans and pick which is best for you and your family at an affordable price. No bouncing from agent to agent. Contact one now at [email protected]. To get an instant quote, you can enter your zip code in the bar above. Do not wait and end up having to pay a penalty that could cost more than monthly premiums.

2017 Health Insurance Open Enrollment Has Been Shortened!

Shortened Open Enrollment Period- When Is The Deadline & What This Means For You

This year the government has decided to shorten the Open Enrollment Period from three months to only six weeks, lasting from November 1, 2017 to December 15, 2017. If you sign up during this period, coverage does not start immediately, it begins January 1, 2018. With a shortened amount of time, it is important to be diligent and look into plans as early as possible. If not, you can end up getting stuck with a plan that does not suit your needs, or even worse, miss out on signing up for a plan altogether.

Some states have extended their open enrollment period to allow people more time in choosing a plan. These nine states are highlighted on the map below:

2017 Open Enrollment Period has been shortened in most states. Only 9 States have extended deadlines.

California – November 1, 2017 to Jan. 31, 2018
Colorado – November 1, 2017 to Jan. 12, 2018
Connecticut – November 1, 2017 to December 22, 2017
District of Columbia – November 1, 2017 to Jan. 31, 2018
Florida – November 1, 2017 to Dec. 31, 2017
Massachusetts – November 1, 2017 to January 31, 2018
Minnesota – November 1, 2017 to January 14, 2018
New York – November 1, 2017 to January 31, 2018
Rhode Island – November 1, 2017 to December 31, 2017
Washington – November 1, 2017 to January 15, 2018
Select Georgia Counties – November 1, 2017 to Dec. 31, 2017
- Camden, Charlton, Chatham, Coffee, Glynn, Liberty, McIntosh
Select Texas Counties – November 1, 2017 to Dec. 31, 2017
- Aransas, Austin, Bastrop, Bee, Brazoria, Caldwell, Calhoun, Chambers, Colorado, DeWitt, Fayette, Fort Bend, Galveston, Goliad, Gonzales, Grimes, Hardin, Harris, Jackson, Jasper, Jefferson, Karnes, Kleberg, Lavaca, Lee, Liberty, Matagorda, Montgomery, Newton, Nueces, Orange, Polk, Refugio, Sabine, San Jacinto, San Patricio, Tyler, Victoria, Walker, Waller, Wharton

Not all states can change their open enrollment period, but there are three more states that can extend at anytime. These three states are Idaho, Maryland, and Vermont.

Not only has the open enrollment time been reduced, but there are also added provisions

1. Special Enrollment Period- When the open enrollment period is over, people may enroll during the special enrollment period. These circumstances are such as when you adopt or have a child, get married, lose coverage from employer, or move outside network area. With the change of a shorter enrollment period, came a stricter ruling on special enrollment. Now you need to send documentation in a short period of time to prove your circumstance, whereas before they just took your word on it.
2. Non Payment Loopholes Removed- Some people learned a loophole to save money during open enrollment. They would stop paying their premium in the months leading up to enrollment so their plan gets cancelled. But now with new provisions, you cannot switch coverage unless your old coverage is paid in full. Due to this rule, a lot of people who are behind on payments will not be able to sign up.

How Does This Affect You

In the previous year, when the open enrollment period was 3 months, more people signed up later in the open enrollment period. During the second half of the 3 months (about 7-12 weeks) is when 60% of new enrollments occurred and when people switched plans. With only 6 weeks open, people are forced to make a quicker decision in choosing a plan, and some might miss out completely. Enrollees who signed up in January, and had a Feb. 1 effective date, were healthier on average than those with a Jan. 1 effective date. People who are healthy may procrastinate and miss out on open enrollment this period, and these healthy procrastinators are the ones who balance the risk pool and lower premiums.

How This Will Affect The Healthcare System

Insurers do not favor longer open enrollment periods. This is because people will wait until they are sick before they apply for coverage, and then insurers will have to cover their pre-existing conditions. Insurance companies fear of going broke due to all the sick individuals they must cover. If the healthy procrastinators do not sign up because they missed the opportunity, then the premiums will go up in order to cover those who are sick.

Given the shorter amount of time to sign up for insurance, it is very important to go over plans and choose the best one for you, rather than making a rushed decision. In order to better prepare yourself, you need to consider some things when purchasing a health insurance plan. You need to consider past health needs, future health needs, pharmaceutical needs, and your financial situation. Ez.Insure will help you choose the plan that suits all those needs. Simply put your zip code in the bar above to get started, or contact us through email at [email protected] or call 888-350-1890 . One of our agents are always ready to help you at no charge, with no obligation.

Tag: Health Insurance