Why did health insurance rates go up this year?

December 30, 2016

Share on FacebookGoogle+Tweet about this on TwitterEmail to someone

If you are buying your own health insurance this year, you may have noticed that health insurance plan prices seem pretty high and you may be wondering why.

That’s a good question.

There are several reasons why health insurance plan prices are up this year:
– Many health insurance companies have pulled out of state marketplaces, which has created less competition to keep prices down.
– The cost of healthcare and medicine has gone up.
– Health insurance companies previously mispriced plans and are trying to recoup costs.
– Because the Affordable Care Act allowed patients with pre-existing conditions to sign up for health insurance, health insurance companies have said that customers buying health insurance are less healthy and their medical bills exceed their monthly payments to the company.

All of these issues have created a perfect storm for high prices.

In this blog post, we’ll focus on which large health insurance companies have pulled out of state marketplaces and what you can do about it.

Because health insurance companies have been losing profits, Aetna, Humana, UnitedHealthCare have pulled out of several states and are only offering their plans in a handful of areas. And the plans they offer in these areas are often expensive. (Here is a helpful list that explains which health insurance companies are available in which states.)

Fortunately, many states have regional health insurance companies that offer more competitively priced plans. Though these plans typically don’t offer as large of a doctor and hospital network like plans from Aetna, Humana or UnitedHealthCare do, they can be a good alternative if you don’t go to the doctor often and a large monthly payment isn’t doable for you. (For the Texas region, we recommend Vista360Health.)

Also, subsidies (price discounts) on your plan are still available for people who make under an average of $40,000 a year.

As we look to the future, it’s difficult to know exactly what will happen to our health insurance system and if large carriers will return to certain states. In the meantime, it’s important to get health insurance, and we can help! We make finding a plan easy and pain-free. We know this year is tough and we want to be there for you.