ObamaCare Insurance premiums are usually a sore subject for most citizens in the US; however, the increase in the Florida rates for ObamaCare is a response to the protections that are contained within the law of the US which include the mandates for companies to cover those who have pre-existing conditions.
Why the Health Insurance Premium in ObamaCare Increases
The primary reason why the health insurance plans in Florida increase under ObamaCare is the requirement for insurers to cover even the high-risk consumers. Insurance companies are not allowed to deny Americans with pre-existing health conditions and can’t charge higher premium rates according to the health status or gender of the client. These factors, as well as other rights, protections, and benefits have led to increase even in the best health insurance Florida.
Slow Premium Growth in 2015
In 2015, however, many of the premium growth had slowed down and the health care expenses curbed for the first time in 10 years in various instances. Aside from that, a lot of Americans can now avail reduced premium rates and lower out-of-pocket costs by joining in the State’s health insurance marketplace.
ObamaCare Premiums in 2015
According to several reports, the average increase in premium growth this year is only 4%. It is very important to note that the rate of the insurance premiums greatly vary per region; thus, not everyone expects to see the rates decrease or stay the same.
Regardless of the increases in the rate of your insurance company and your region, you’d want to sign in to your state’s market place and search for new plans being offered this year and ensure that all your information is updated before the end of 2015.
Subsidies and Taxes
As the average insurance premium continues to increase faster than the inflation since 1999, the amount of premiums that a lot of Americans pay has gone down significantly last year (2014). Those who are under the 400% federal poverty level are qualified for premium tax credits, thereby reducing monthly insurance premiums. Small employers, on the other hand, will also get tax breaks of approximately 50% off the cost of the premium paid by the employees.
Those who are eligible for receiving tax credits and tax breaks should expect to pay lower insurance premiums (while the rest of the costs are made up using subsidies). In fact, some Americans can even get assistance on out-of-the-pocket costs such as copays, co-insurance, or out-of-pocket maximums and deductibles. Over 15 million will also get free insurance with the use of the Medicaid.
The higher earners, on the other hand, will have higher premiums due to cost sharing that is under ObamaCare being included in their tax. In conclusion, those who make more money, ends up paying more; and those who make less, pay less respectively. Also take note that high end insurance policies undergo 40% excise tax beginning 2018. This excise tax will, thereby, cause these high end insurance plans to be more expensive than it is today.