Dtail
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Same here.
ACA Rate Increases For 2023
- Thread starter scrabbler1
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Same here.
Alex The Great
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Thanks, it seems for one person in household those with MAGI $18,755 to $54,360 in 2022 are not affected by this legislation then.
SecondCor521
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I wondered about her when the deal was announced. I thought last time she was not in favor of raising corporate taxes, which I heard this deal uses as its funding source. Eh, maybe she's changed her mind or her position is more nuanced.
I read the description of the bill as extending the increased ACA subsidies from the ARP Act last spring for another few years. They were due to expire at the end of this year. So there would be an impact on people in the subsidy range one way or another, as the amount of the subsidy would differ starting 1/1/2023 depending on whether this mini-BBB becomes law or not.
But that reading was based on a web article and not the bill text, so their summary or mine might be off.
scrabbler1
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When the ARP got passed in the spring of 2021, my ACA premium dropped about $120 per month, and my MAGI is about $32k (single person). So, I have been assuming that if the additional ACA subsidy did not get extended, my premium would rise by about $120 per month.
For me, this was icing on the cake because it was only in 2020 that I got back on the ACA subsidy train following a big change to the stock mutual fund part of my portfolio. In the closing days of 2019, I liquidated an actively managed stock fund which was vomiting (as one poster here has so eloquently put it) cap gain distributions and replaced it with a similar index fund, greatly reducing my MAGI so I could resume qualifying for ACA premium subsidies. That change cost me a bundle in taxes but it also got me a $350 per month subsidy, a much bigger effect on my HI premium than the ARP.
For me, this was icing on the cake because it was only in 2020 that I got back on the ACA subsidy train following a big change to the stock mutual fund part of my portfolio. In the closing days of 2019, I liquidated an actively managed stock fund which was vomiting (as one poster here has so eloquently put it) cap gain distributions and replaced it with a similar index fund, greatly reducing my MAGI so I could resume qualifying for ACA premium subsidies. That change cost me a bundle in taxes but it also got me a $350 per month subsidy, a much bigger effect on my HI premium than the ARP.
Alex The Great
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Hmm, it appears the legislation would affect everyone on ACA then? If so it would be nice if they pass it through. But this is an extension for three years only, nobody know what will happen after that. Hope ACA will be still around in some shape, as I have too many years left before Medicare.
GTFan
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Kaiser Family Foundation article on the impact of extending subsidies - yes the cliff goes away as long as these are in effect since it's an extension of what we have now. The administration obviously wanted these to extend past the 2024 election.
https://www.kff.org/policy-watch/fi...newal-of-extra-affordable-care-act-subsidies/
Article also mentions the impact of not renewing them and the uncertainty this caused for insurers, as I mentioned above.
The Ticking Clock: Why the Timing Matters
Insurers are now in the process of setting 2023 premiums and some are already factoring in an additional premium increase because they expect ARPA subsidies to expire.
The National Association of Insurance Commissioners (NAIC) wrote to Congress asking to extend these subsidies by July to provide greater certainty as insurers set premiums for next year. Premiums for 2023 are locked in by this August, so if Congress does not act before its August recess, whatever assumptions insurers make about the future of ARPA subsidies will be factored in to their 2023 premiums.
https://www.kff.org/policy-watch/fi...newal-of-extra-affordable-care-act-subsidies/
Article also mentions the impact of not renewing them and the uncertainty this caused for insurers, as I mentioned above.
The Ticking Clock: Why the Timing Matters
Insurers are now in the process of setting 2023 premiums and some are already factoring in an additional premium increase because they expect ARPA subsidies to expire.
The National Association of Insurance Commissioners (NAIC) wrote to Congress asking to extend these subsidies by July to provide greater certainty as insurers set premiums for next year. Premiums for 2023 are locked in by this August, so if Congress does not act before its August recess, whatever assumptions insurers make about the future of ARPA subsidies will be factored in to their 2023 premiums.
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Carpediem
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The extension is huge for us as well since it will get us both to Medicare. We've had a bronze plan (HSA) the past 2 years and our premium is $0. Crazy!
tominboise
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We have an ACA silver plan for three people (myself, wife and daughter) and I manage our income to maintain the maximum subsidy. So in 2021 we got an increase in our ACA subsidy due to the COvid relief plan and ended up paying something like $12.50 per month. Then in 2022 our premium went back to the old levels (approx $320/month). My question - will this legislation maintain our existing premiums or revert to the lower premiums we saw in 2021?
The subsidy formula for 2021 and 2022 is much more generous, it isn't just about the cliff.
SecondCor521
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
The subsidies have worked the same way since the ARP Act was passed in spring 2021, although many ACA enrollees had to wait until early summer or even fall for their premiums to be adjusted to reflect the new legislation.
If you've seen that much of a change in your premium, I suspect that your situation has changed (family size, address, plan, or AGI). The other small possibility is that your marketplace adjusted your subsidy so late, and they took into account what you had already paid in the first part of 2021, that your premium dropped to that low number.
If passed, this new legislation extends the subsidies to continue to work the same way for the next three calendar years.
PaunchyPirate
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I would agree with secondcor521 above. Your 2021 numbers were likely skewed by the late timing of the legislation for that year. Your 2022 numbers should be more in line with what you should expect for 2023 IF the new legislation successfully passes to extend the enhanced subsidies.
However, don’t make too many plans based on those numbers. Insurers may drastically raise rates which can have very changing effects on premiums. Especially if the baseline Silver plan gets altered. Yes, the subsidy might go up too. But there are several moving parts before premium costs to you can be certain.
24601NoMore
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Must be nice. Best plan I can find for us (Bronze HMO/HSA) is $651/mo for 2, with a $7K+ per person deductible. And that's WITH subsidies.
DW goes on Medicare late this year. So, "our" ACA expense will drop by ~60% (since it will be just me, the "younger" one on ACA) and will be way below 8.5% of MAGI. So, I expect to get zip, zero, notta next year in terms of subsidies. Greaaaaat.
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tominboise
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OK, that makes sense. Still good news that the subsidies will carry forward.
PaunchyPirate
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Pennsylvania just released the proposed health insurance rates that have been requested by the various companies that provide coverage in our state. Across the state, the proposed increase is an average of 7.1% across all plans. The usual pattern is the the insurance rates get adjusted downward slightly from this point, but not by much, for the November 1st open enrollment date.
The State's press release can be found here:
https://www.media.pa.gov/Pages/Insurance-Details.aspx?newsid=480
At the bottom of that page, there is a link to the page where they post the details from each insurance company. These details are lengthy PDF files filled with a bunch of pages of spreadsheets and descriptions that spell out their proposed plans and rates. If you take the time to decipher these documents, you can find what is being proposed for your county and age. Each insurance company has their own document, so you can't easily compare multiple companies' plans in one document.
In my case, I'm happy to see that it looks like Highmark BC/BS, my current insurer, is continuing my plan for next year. If I didn't age, my rate would go up about 5% from 2022. However, since I will be a year older, my rate is going up about 12%. This assumes I keep the same plan. I will have to wait until October to see the all the marketing stuff that goes with the various plans to see what the best fill will ultimately be.
My unsubsidized rate for my top level Gold plan, 1 person, was $1022.43 (for age 59) and will rise to $1147.26 (for age 60) per month.
I will likely keep this plan, as I've been happy with it. There is only one other insurer on the ACA exchange in my county and they only offer me HMO plans. So I'll pay more to get the full PPO. And the price difference isn't that much, really.
At some point, the State's Insurance Department will create a master spreadsheet that is better for comparing offerings across all the companies. They have not yet posted that to the website. But you might keep an eye open for it. I can't recall when they posted it last year.
The State's press release can be found here:
https://www.media.pa.gov/Pages/Insurance-Details.aspx?newsid=480
At the bottom of that page, there is a link to the page where they post the details from each insurance company. These details are lengthy PDF files filled with a bunch of pages of spreadsheets and descriptions that spell out their proposed plans and rates. If you take the time to decipher these documents, you can find what is being proposed for your county and age. Each insurance company has their own document, so you can't easily compare multiple companies' plans in one document.
In my case, I'm happy to see that it looks like Highmark BC/BS, my current insurer, is continuing my plan for next year. If I didn't age, my rate would go up about 5% from 2022. However, since I will be a year older, my rate is going up about 12%. This assumes I keep the same plan. I will have to wait until October to see the all the marketing stuff that goes with the various plans to see what the best fill will ultimately be.
My unsubsidized rate for my top level Gold plan, 1 person, was $1022.43 (for age 59) and will rise to $1147.26 (for age 60) per month.
I will likely keep this plan, as I've been happy with it. There is only one other insurer on the ACA exchange in my county and they only offer me HMO plans. So I'll pay more to get the full PPO. And the price difference isn't that much, really.
At some point, the State's Insurance Department will create a master spreadsheet that is better for comparing offerings across all the companies. They have not yet posted that to the website. But you might keep an eye open for it. I can't recall when they posted it last year.
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Markola
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Yeah, our ACA premiums went from about $1,200 month to $4/month for Aug - Dec. 2021. I’ll be watching this bill closely along with you!
aaronc879
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Our healthcare is so messed up. Someone with your income/net worth should not be paying only $4/mo but no one should be paying $1200/mo just for the premium.
EastWest Gal
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Plus $7000 per person deductible.
Everything about health care is messed up. All the practices are now owned by large hospital systems. They can place fraudulent charges with impunity, upcoding and the like, and it takes a huge amount of legwork to straighten it out. You can report to the state all you want, but the state seems to only want to go after the poorest recipients of Medicaid, and not the giant health systems.
At least surprise billing is now against federal law, and the ACA seems here to stay. It has provisions that help protect against medical bankruptcy, such as losing your insurance when you actually get sick.
Everything about health care is messed up. All the practices are now owned by large hospital systems. They can place fraudulent charges with impunity, upcoding and the like, and it takes a huge amount of legwork to straighten it out. You can report to the state all you want, but the state seems to only want to go after the poorest recipients of Medicaid, and not the giant health systems.
At least surprise billing is now against federal law, and the ACA seems here to stay. It has provisions that help protect against medical bankruptcy, such as losing your insurance when you actually get sick.
Yes our ACA policy was about $1800 per month with the $7000 per person deductible and to make matters worse the policy was a narrow network HMO - our county and maybe one other county only.
During the height of Covid I called to ask the insurance company what would happen if I needed to be hospitalized for Covid and the one hospital in network was full. The answer was that I could be on the hook for the full bill. I didn't need to find out if that was true
or not but was still distressing to hear.
During the height of Covid I called to ask the insurance company what would happen if I needed to be hospitalized for Covid and the one hospital in network was full. The answer was that I could be on the hook for the full bill. I didn't need to find out if that was true
or not but was still distressing to hear.
Markola
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I agree. Not only that, the only reason we got that 5 month break was because I learned about it here and really dug in with our state exchange.
Before the Covid Relief Package (2020), my wife and I were paying $1348/mo for a bronze plan with a $17,400 deductible. Yep, pretty expensive but worthless insurance. This year, that bronze plan would have been $1609/mo. That would have amounted to 27% of our after-tax income. The subsidy brought that $1609 down to $515/mo
and it is.
wallygator69
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Howdy,
We are in SC, myrtle beach. Our MAGI is a ROTH conversion. I can make it anything.
This year I plan on making it $23k. My CPA just confirmed our part is $276/ month for a BCBS silver plan.
How can that make sense unless it is a SC thing?
Any thoughts...
Thx
Wally
No way should it be $276 a month with $23K income on the ACA, it should be almost nothing.
