ObamaCare 2021 Registration Opens Nov 1st: What You Need to Know

The fate of the Affordable Care Act (ObamaCare) is changing, but prices for health insurance plans for 2021 remain stable, writes NPR.

Photo: Shutterstock

Faced with the pandemic, record unemployment, and unknown future costs of COVID-19 treatment, health insurance companies have responded by lowering rates in some areas and only marginally increasing premiums for 2021.

While final rates have not yet been analyzed in all states, those who study the market say premium increases will be in the single digits — and declines will not be uncommon.

This is good news for the more than 10 million Americans who purchase ACA health coverage in federal and state markets. The Federal Market, which serves 36 states, will open November 1, 2020 to buy insurance for 2021, and the enrollment season will end on December 15. Some of the 14 states and the District of Columbia that have their own markets have longer registration periods.

The downside to lower premiums is that some consumers who are eligible for subsidies when purchasing insurance coverage may face a reduction in this assistance. The subsidies are determined by a combination of the consumer's income and the cost of the control plan.

Here are a few things to know about 2021 coverage:

This year, insurance may cost about the same or even less than last year

“For the third year in a row, premiums have remained fairly stable,” said Louise Norris, a Colorado-based insurance broker who monitors rates across the country. “We saw moderate rate changes and an influx of new insurers.”

This relative stability has followed ups and downs, with the most recent big increase in 2018, in part in response to the Trump administration's cutbacks in some payments to insurers. Because of this increase, prices for some people, especially those not eligible for subsidies, are tied to both income and the cost of premiums.

Charles Gaba, a web developer who has been tracking ACA enrollment data on his website since late 2013, monitors premium changes based on documents filed with state regulators. Each summer, insurers must submit their proposed rates for the following year by state. He said the average requested premium increase for the next year nationally is 2,1%. In the 18 states where regulators have approved the rates insurers are asking for, the percentage is lower—0,4%.

Experts say premiums vary by state or region (even by insurer) for a number of reasons, including the number and relative bargaining power of insurers or hospitals in a region, which affects the ability of insurers to negotiate rates with providers.

On the subject: In Illinois, elderly illegal immigrants will receive free medical insurance

Moving to a regular plan can help you keep your premiums

Jobseekers should update their financial information, especially this year, when many are suffering from job losses or job losses. You may be eligible for a larger subsidy. You can update the data online or call the local insurance market for help. Insurance brokers can also help people sign up for ACA plans. When making a purchase, it's important to check if the doctors and hospitals you want to go to are covered by the plan.

Bonuses are only one part of the equation. Consumers should also keep a close eye on annual deductibles, because the trade-off for lower premiums may well be higher annual deductibles that must be met before most coverage begins.

What's behind the premium changes

According to Gab's website, plan applicants in some states will see premiums drop next year: In Maine, for example, average premium prices fell 13% and in Maryland they dropped nearly 12%. At the same time, Indiana's average increased by 10%, Kentucky - by 5%.

In Florida, regulators say insurance premiums will rise by about 3%; in California, an increase of half a percentage point is expected - the lowest average increase since 2014.

Other factors affecting rates include regulatory intervention to change the original rates, as well as an ACA clause that requires insurers to spend at least 80% of their income on direct health care. If insurers do not meet this standard, they must pay discounts to policyholders. Many insurers already owe clients money from previous years.

Most insurance companies did not name additional COVID treatments or testing costs as factors for the requested rate hike, Gab said. However, even those who did so generally considered these factors to be insignificant due to the fact that people massively delayed planned treatment during the pandemic.

A lesser factor may be the cancellation of premium fees paid by insurers. The commission was finally canceled by the Trump administration from 2021.

On the subject: How to reduce the cost of health insurance in the USA, and does it make sense to do it

New marketplaces in select states and a publicly available option

New Jersey and Pennsylvania residents will buy coverage in new state markets for 2021 after those states pulled out of the federal healthcare.gov site, which now covers 36 states. Legislators in these states have said that having their own marketplaces gives them more control and can save money over time.

In 19 counties in Washington State, insurers offer "government option plans" that have all the standard benefits, including lower deductions, and must meet additional quality standards.

As anticipated, government option plans were aimed at being less costly, and legislation linked payment rates to Medicare. State option insurers must adhere to an aggregate cap on payments to doctors, hospitals, and other health care providers, on average, 160% of what Medicare would pay for the same services.

However, when premium rates became available, the five insurers offering these plans had different prices. Not all parts of the state have this option, but where it does, the two insurance companies with a government option have either lower premiums than other plans in the area or are the lowest cost plan offered by the insurer.

But three more suppliers had higher prices than usual. State marketplace officials said the higher prices could reflect a number of factors, from the difficulty of running the program during COVID-19 to a lack of incentives to attract providers to participate.

Read also on ForumDaily:

7 Myths About US Social Security That Could Cost You Your Pension

Eye care during a pandemic: an ophthalmologist shared tips

'Not everyone knows why they came': how the Russian vaccine against COVID-19 is tested in humans

Unexpected Factors Affecting Your US Credit Rating

Do you want more important and interesting news about life in the USA and immigration to America? — support us donate! Also subscribe to our page Facebook. Select the “Priority in display” option and read us first. Also, don't forget to subscribe to our РєР ° РЅР ° Р »РІ Telegram  and Instagram- there is a lot of interesting things there. And join thousands of readers ForumDaily New York — there you will find a lot of interesting and positive information about life in the metropolis.