Why Did My Affordable Care Act (ACA) Insurance Premium Increase?

Many people have been asking why their ACA insurance premiums have increased, even though their income, state, and plan have not changed. In this blog post, we will explore some of the possible reasons for this and provide some tips on how to lower your premiums.

What is the Affordable Care Act (ACA)?

The ACA, also known as Obamacare, is a health care reform law that was enacted in 2010. The ACA has made health insurance more affordable for millions of Americans, but it has also led to some premium increases for others.

Why Have ACA Insurance Premiums Increased?

There are several reasons why ACA insurance premiums have increased in recent years.

1. The individual mandate was repealed. The individual mandate was a provision of the ACA that required most Americans to have health insurance or pay a penalty. The individual mandate was repealed in 2017, and this has led to a decrease in the number of people who have health insurance. As a result, the risk pool for health insurance has become smaller, and this has led to higher premiums.

2. Cost-sharing reduction payments were eliminated. Cost-sharing reduction (CSR) payments were subsidies that were paid to health insurance companies to help lower the cost of deductibles, copayments, and coinsurance for low-income Americans. CSR payments were eliminated in 2017, and this has led to higher premiums for many people.

3. Premiums are based on the second-lowest-cost silver plan. The ACA requires health insurance companies to offer a range of plans, including bronze, silver, gold, and platinum plans. Premiums for silver plans are based on the second-lowest-cost silver plan in the area. If the second-lowest-cost silver plan increases in price, then premiums for all silver plans will increase.

4. Increase in medical costs. The cost of medical care has been increasing for years, and this has led to higher premiums for health insurance.

What Can You Do to Lower Your ACA Insurance Premiums?

If you are facing a premium increase, there are several things you can do to lower your costs.

1. Shop around for a new plan. Even if your current plan has increased in price, there may be other plans available that are more affordable. You can shop for plans on the Health Insurance Marketplace or through a licensed insurance agent.

2. Change your deductible. A deductible is the amount of money you have to pay out-of-pocket before your insurance coverage begins. If you choose a plan with a higher deductible, your premiums will be lower.

3. Reduce your coverage. You may be able to lower your premiums by reducing your coverage. For example, you could choose a plan with a lower maximum out-of-pocket limit or a plan that does not cover certain services.

4. Get a subsidy. If you qualify, you may be able to get a subsidy to help lower your premiums. Subsidies are available to people with incomes below a certain level.

5. Seek help from a licensed insurance agent. A licensed insurance agent can help you find the best plan for your needs and budget.

If you are concerned about your ACA insurance premium, we encourage you to explore your options and see if you can find a more affordable plan.