By Tressa Walton, Wilson-Hite Insurance
It’s everyone’s favorite word as we begin to see the renewal rates start coming in. As most of us know by now, the Affordable Care Act is anything but affordable and is going to leave a lot of people without insurance which ironically is why the ACA was created to begin with.
If you were “lucky” enough to get a health plan after Jan 1, 2014 then you are now in the hot seat. As many of you are aware, Wellmark, Aetna, and United Healthcare stated early in the year they were pulling from the ACA market all together. It is no longer a viable risk for them to be a part of and they are nonrenewing any plans that began after 1/1/14 and are not offering ANY new plans for 2018. Medica decided they needed to offer something for Iowans and proposed a 57% increase from their plans last year which was approved. So what does a Medica plan look like for a young family of four- how does $1960 a month sound for a BRONZE plan with a $6850 single deductible? For a family of four with kids over 14 for a BRONZE plan is $2373. What does one look like for a SILVER plan of someone 63 years old who was thinking of retiring early- how does $1622/month sound for one person? Affordable?
If you are on a group plan, you are in the safest market. Groups are seeing increases in premiums and some employers are passing those on, taking higher deductibles or trying to absorb those costs. But a group premium will typically always beat an individual plan in pricing.
The over 65 market is unchanging and none of the ACA affects them. It’s the UNDER 65 market that is a mess. Now if you are lucky enough to still be on a plan that started before Jan 1, 2014 you are on what is called a grandmothered or grandfathered plan and while those rates are going up, they are still much more affordable than the ACA plans.
We can only hope that the powers that be come together to find solutions to the rising cost of healthcare in America. There are some reasonable steps that could be taken and implemented to make some working solutions for every American.
Healthcare is an area Wilson-Hite knows well so whether you are over 65 and looking for a Medicare Supplement or one of the Iowans that are trying to figure out what to do in the under 65 market, give us a call. We’d love to help you try to figure it all out.