Health Insurance Costs Rise, Putting Pressure on Middle-Income Earners

Health insurance prices are going up, and it's not good news for many people. The government recently showed the new prices for health plans under the Affordable Care Act (ACA) in 30 states. On average, prices are increasing by about 30% in states where the federal government manages the plans, and 17% in states that handle their own markets. Most of the over 20 million Americans covered by the ACA get help paying for their insurance through tax credits. These credits make the plans more affordable. The help increased in 2021, but it's set to expire next year unless Congress decides to extend it. This has become a big issue in the ongoing government shutdown talks. The price hikes are due to several factors, including rising drug and hospital costs. Insurance companies are also worried that fewer young, healthy people will sign up if the subsidies end. This could make the plans more expensive for everyone. For example, Sue Monahan, a retired university administrator from Oregon, will see her monthly insurance cost jump from $439 to $1, 059 if the enhanced subsidies expire. She can't go without insurance because of her health history. “It’s not there for what you foresee; it’s there for the unexpected expensive events, ” she said. Starting Saturday, Americans can begin choosing their plans for next year at healthcare. gov. Experts worry that some people might drop their insurance when they see the higher costs, even if Congress later renews the subsidies. Insurance executives advise people to sign up now, as they can change their plans later if needed. The price increases will hit certain groups harder, especially those earning more than about $64, 000 a year. These individuals will lose access to financial help, making their insurance costs rise significantly. Most of them are entrepreneurs, small business employees, or early retirees. About half of the people insured under the ACA have incomes near the poverty level. They currently pay nothing toward their premiums, but their costs will go up by around $25 to $85 a month. For them, these amounts can be a big financial strain. David Merritt, a spokesman for the Blue Cross Blue Shield Association, pointed out that younger, healthier consumers might think they don't need coverage. This could leave older and sicker people in the marketplace, making insurance more complicated and expensive for everyone.