This specific summer’s uncertainty over the fate of exchange plan policies led high premium increases for 2018, up an average of 37 percent by a year ago, according to CMS. Those cost hikes will hit hard for consumers who don’t receive tax credits although may actually result in lower costs for those who do get premium assistance.
In most states, insurers loaded up the biggest increases on benchmark Silver exchange plans, which are used to determine tax credits. As a result, 2018 tax credits will be up 45 percent on average by a year ago. So, the 85 percent of enrollees who receive premium assistance will be insulated by cost hikes.
“The premium tax credit will cover the increase for the vast majority of consumers,” said Karen Pollitz, a senior fellow at the Kaiser Family Foundation, although she adds in which This specific year the item truly pays for those with subsidies to consider trading down to cheaper plans if their overall health costs are low.
“For a 40-year old with income at around $25,000, in about half of the counties inside United States, in which person could get a Bronze plan for free. The increase inside tax credit will be so much in which the item will completely cover the premium for the lowest-cost Bronze plan,” Pollitz explained.
According to CMS’ own data, 80 percent of enrollees will pay less than $75 a month for premiums, as well as in some cases $0 once tax credits are applied. Health insurance brokers say in which can be leaving enrollees more than a little confused.
“There can be a lot of confusion by a customer standpoint … primarily about $0 premium plans they see inside marketplace as well as why in which can be when Trump cut the subsidies,” said Nate Purpura, a spokesman for online insurance brokerage eHealth. “People are seeing $0-$10 for bronze as well as gold plans … as well as calling to make sure they’re seeing the numbers right.”
Oscar as well as Cleveland Clinic are hoping in which by working together, they can get the numbers right on their brand new health plan. They expect to do better than break even, no matter what happens with health policy in Washington.
“We have to drive quality, as well as we have to make care more affordable,” said Cleveland Clinic CEO Delos Cosgrove. “Those are ‘no regret’ moves. as well as if we keep moving in in which direction, regardless of what happens in Washington, we’ll be okay.”
— Follow Bertha Coombs on Twitter: @coombscnbc