By Trish Pearson
Guarantee your future
Today’s insurance plans are quite different than they were 10 years ago. Most plans include a deduction of over $ 2,000 per person and an out-of-pocket payment of up to $ 10,000. The number of people who are in debt for medical expenses is increasing dramatically. To insult the injury, a Connecticut insurance company applied for a double-digit rate hike in 2023. According to the UniversalHealthAssociation, the average demand increase for individual plans on and off the exchange is 20.4%, and for SME plans it is 14.8%.
Companies did not reduce their deductions or out-of-pocket caps, which could waste their personal finances. Employers need to absorb the increase in premiums or pass them on to their employees. Neither of these options is particularly attractive.
The insurance industry cites three reasons for the significant increase. First, the usage rate is increasing. (Isn’t that the overall idea behind extending health insurance to everyone?) Second, COVID-19 backlogs with ongoing selective surgery and testing. Caused. Third, a law has been passed that demands more benefit from people with certain conditions, such as diabetes.
The Connecticut Insurance Department is currently considering these requirements and is seeking public opinion. If these potential increases are okay, do nothing. But if you’re like most people, it’s not okay to pay higher premiums and then pay upfront costs for medical care.
All you can do is register your concerns on the CID website Portal.ct.gov/cid and click on the 2023 Health Insurance Claim Application. You can then see how much each company has requested and have the opportunity to comment on a particular company’s plans. The deadline for comments is July 31st.
A second deadline is approaching to reduce the advanced premium tax credits extended to many due to the American Rescue Planning Act. The plan extends the tax credit eligibility to individuals with annual incomes of less than $ 80,000. For example, if you earn $ 79,000 a year at the age of 40, you are now eligible for a tax credit of approximately $ 241 for a $ 581 monthly premium on your Silver Level plan.
If ARPA is not renewed, the income limit will drop to $ 45,000. Many will fall off the “cliff of insurance subsidies” and face an increase in monthly premiums of about 59%. This could lead people to roll dice about their health care needs and return to destroying their insurance plans. This would invalidate the entire purpose of the Affordable Care Act.
A law to extend ARPA beyond 2022 will be submitted to Congress sometime in early fall. It is important to inform Congressional representatives of the impact it will have on you and your family. Please contact Congressman Rosa De Lauro, Senator Chris Murphy and Richard Blumenthal to register your concerns. All three of these legislators have upheld legislation that limits medical costs, but all stories give them the ability to make stronger claims.
Major medical events can be physically painful, but they should not be financially painful either. Please raise your voice.
Trish Pearson is a licensed and independent insurance agency and a certified long-term care specialist. Contact her at 203-640-5969 or trishpearson281@gmail.com.