Tag: premiums

Small Businesses Might Drop Obamacare as Premiums Skyrocket

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Health insurance premiums offered under the Affordable Care Act (ACA), colloquially known as Obamacare, will rise next year, hitting small businesses particularly hard and potentially pressuring them to drop out of the program.

While recent provisions in the Inflation Reduction Act have provided additional subsidies for individual consumers that will likely offset the increased cost of premiums, no such support was granted to small business owners, according to the Wall Street Journal. Insurers are proposing median premium increases of 10%, but some are proposing increases as high as 20%.

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Democrats Worry About Spike in Obamacare Premiums Ahead of Midterms

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As Democrats head into the November midterms with historically low approval ratings, another major factor could arise that will further contribute to the shrinking of their already-slim majorities.

As reported by The Hill, the Affordable Care Act – known colloquially as “Obamacare” – could face a significant increase in premiums due to a lapse in special funding provided by the coronavirus aid bill passed last year. That bill, known as the American Rescue Plan, temporarily increased financial assistance for Americans seeking healthcare through Obamacare; the increase was set to expire just one year after the bill’s passage.

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States Have a New Opportunity to Lower Health Insurance Premiums and Expand Options

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by Mary Fishpaw   The Trump administration is offering welcome relief to Americans struggling with high premiums under Obamacare premiums and a lack of insurance choices. The administration has taken a series of regulatory actions to do the following: Make short-term, limited duration policies widely available and give consumers the right to renew those policies. Make it easier for small businesses and independent contractors to band together for greater insurance purchasing power. Propose to allow employers to contribute to tax-advantaged accounts, which their workers could then use to purchase portable insurance coverage. The Department of Health and Human Services also has made it easier for states to promote more affordable, flexible insurance coverage options by obtaining waivers from restrictive Obamacare regulations. These “State Empowerment and Relief Waivers” enable states to tap money that the federal government would have paid directly to insurance companies in the form of premium subsidies. States could repurpose this money to design and implement their own premium assistance programs. Such programs could distribute subsidies through defined contributions to consumer-directed accounts established for low-income individuals. States also could provide premium subsidies for insurance policies that don’t conform to Obamacare’s rigid requirements. States that obtain these waivers would…

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Congress Can Slash the Cost of Health Care Premiums by as Much as a Third

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by Doug Badger   A proposal to repeal Obamacare entitlements and replace them with grants to states would reduce premiums for individual coverage by as much as 32 percent, according to an analysis by the Center for Health and Economy. The Health Care Choices Proposal also would modestly reduce the deficit, increase the number of people with private health insurance, and cut Medicaid spending, according to Center for Health and Economy. The proposal, the product of national and state think tanks, policy analysts, and others in the conservative community, embarks on a new path to empower consumers and return authority to the states to provide people with better and more affordable health coverage options. The Center for Health and Economy developed the study, at the commissioning of The Heritage Foundation, by applying its independent model to the published Health Care Choices Proposal. Unlike previous Obamacare replacement proposals, which the Congressional Budget Office forecasts would increase the number of uninsured by 20 million or more, coverage would dip by less than 1 million under the proposal in 2028, and enrollment would hold steady earlier. The proposal’s consumer-centered policies also would induce changes in consumer behavior that would reduce health care consumption and lead to greater medical productivity,…

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Wisconsin and New Jersey are Among the States Looking To Copy Minnesota Model Of Using Federal Funds To Lower Insurance Premiums

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by Evie Fordham   Several states including Wisconsin and New Jersey are seeking to copy Minnesota’s model of federal reinsurance program funding that contributed to a 13-percent drop in premium rates in the state from 2017 to 2018. The Minnesota legislature adopted the program, which uses mostly federal funds to help insurers cover people with medical bills typically between $50,000 and $250,000, in 2017, reported Kaiser Health News. The program enables insurers to lower premiums and is a policy encouraged by the Trump administration. Wisconsin Republican Gov. Scott Walker is focusing his campaign on his health care accomplishments, including support for his state’s reinsurance program, reported RealClear Politics. He says premiums will be 11 percent lower than they would have been without the program in 2019, reported HealthLeaders Media. Minnesota’s 2018 reinsurance program received $131 million from the federal government, and many other states have applied or are applying for reinsurance program funding. Alaska and Oregon have programs similar to Minnesota’s in place. The main difference between Alaska’s program, which started in 2016, and other states’ is that Alaska’s covers all costs for people with “highest-cost conditions.” Wisconsin and Maine were approved in July, while Idaho, Louisiana, Maryland and New Jersey are working toward having programs set up by…

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Health Insurers in Connecticut and Maryland Ask for Double-Digit Premium Hikes, Tennessee Braces for ‘Sticker Shock’

Tina LaFleur
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Consumers in at least two states face the prospect of double-digit increases in health insurance rates next year, as insurers attempt to price premiums amid uncertainty, including from Congress and President Donald Trump on the fate of Obamacare. Also driving rate increases is the fact that the millions of Americans enrolled on Obamacare’s exchanges are sicker…

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