Affordable Care Act Premium Rates to Increase 7.5 Percent, Less Than Predicted
Premiums on the Affordable Care Act's health insurance exchanges are expected to increase by an average 7.5 percent for 2015.
According to PricewaterhouseCoopers, based on data collected by the Health Research Institute, the average increase projected for 2015 is "well below the double-digit increases many feared," HRI Managing Director Ceci Connolly told The Hill.
PricewaterhouseCoopers noted, however, that the scheduled premium changes across 29 states and Washington, D.C. "vary widely," from as low as below 23 percent, as evident in Arizona, or high as 50 percent, as seen in Arkansas.
"The average individual monthly premium for next year, before any subsidies are applied, is $384. And insurance commissioners get a chance to weigh in on rates before fall enrollment," Connolly said.
As Latin Post reported, states such as Florida and New York have received requests from health insurance companies to increase their customers' premium rates. Each state has a regulatory body that will decide on the premium increase requests.
The second year of the ACA is expected to see an "upswing" in participation from several important public health insurance companies. States including Arkansas, Arizona, Colorado, Florida, Georgia, Kentucky, Tennessee, Virginia and Washington will see the introduction of new health insurance companies into the ACA. The number of new health insurance companies joining the ACA can be as low as one organization, such as in Arizona and Delaware, or as high as Virginia's five.
The ACA's second enrollment period begins Nov. 15.
The second enrollment period may be important for several health insurance companies such as Aetna, the third-largest insurer in the U.S. An Aetna spokesperson reported that 720,000 people signed up for Aetna through the ACA marketplace exchange by May 20. Aetna, however, had fewer than 600,000 paying customers by late June. For the end of 2014, Aetna projected the figures to fall "just over 500,000."
"I think we will see some attrition," Aetna CEO Mark Bertolini said during a conference call on July 29. "We're already seeing it, and we expect that to continue through the end of the year."
While health insurers propose premium increases or decreases, the Congressional Budget Office and Joint Committee on Taxation announced the penalties for individuals who don't have health insurance.
For 2014, the Internal Revenue Service announced the penalty is 1 percent of taxable income, up to $2,448 for an individual making $244,800. For 2015, the penalties are set to increase to $325 for individuals, or 2 percent of their income. By 2016, the penalties will increase to $695, or 2.5 percent of income.
Individuals who have an income of less than $19,650 are fined a flat fee of $95 per year. There is no penalty for people with incomes lower than $10,150.
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For the latest updates, follow Latin Post's Michael Oleaga on Twitter: @EditorMikeO or contact via email: m.oleaga@latinpost.com.
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