Arizonans who buy health insurance from the Affordable Care Act marketplace will have to dig a little deeper to buy their insurance next year. According to a story in the Arizona Republic, Arizona’s benchmark health plan will raise monthly rates 17.5 percent next year…..more than double the national average.
During the first two years of the federal marketplace, Arizona’s benchmark rates were far lower than those of most other states that used the federal marketplace. Consumers benefited from cheaper plans, but the lower-priced benchmark rates also limited tax-credit subsidies for some younger and middle-income consumers.
“We know Phoenix had some of the lowest premium rates in the whole country,” said Allen Gjersvig, the Arizona Alliance for Community Health Centers’ director of health-care innovation. “It is not shocking that it will go up.”
Arizona is not alone. A story in the Wall Street Journal claims that “60% of enrollees—across 30 of the largest markets in the U.S.— will see the average rate for that benchmark plan rise by 6.3%.” Below is more from the Journal story.
“The higher premiums are likely to intensify Republicans’ claims that the health law isn’t holding down costs. The Obama administration is urging customers to go back online during open enrollment, which begins Nov. 1, and shop around to see if they can limit the impact of the cost increases.”
CNBC put together a video to help people try to better understand what lies ahead. Click here or below to watch.
Finally – Becker’s Hospital Review released 5 Things To Know about 2016 ACA health plan premiums – including how the tax penalty for people without health insurance will be higher next year.
Share your thoughts on this latest news and how you think it will impact the people of Arizona over the next several months.