ACA Rate Increases For 2023

[scrabbler1]

I have started similar threads on this topic the last few years. I recently received a letter from my HI company telling me what they are filing for 2023. They are filing a 14.85% increase this time, pushing my unsubsidized monthly premium up $112 to $864 (for one person).

My state's (NY) Department of Financial Services usually reduces filed rate increases, so it is unlikely this will hold up.

Like last year, I am well under the ACA premium subsidy cliff thanks to finally dumping in late 2019 an actively managed stock fund I had been in for more than 20 years and replacing it with a similar index fund. Thanks to the 2021 law change which eliminated the cliff and also increased the ACA premium subsidy, I am now paying only around 1/3 of the total premium.

Have any of you received preliminary letters regarding 2023 rate changes?

 

[erkevin]

Nothing here, yet, in Tennessee. I am one of those who will be pushed off the ACA cliff as the Covid Relief subsidies end in December. The Dems are trying to extend them, but I am not counting on it. Currently, wife and I pay $515/mo. January 1, it will likely climb to $1700/mo. Yep, $1700. And that's for a Bronze plan.

 

[PaunchyPirate]

I have not seen anything yet. In fact, during my 3 previous years on the ACA, my insurance company has never notified me of anything in advance. I "officially" see rates on November 1st when they go live on the exchange.

This year, I'm on BC/BS for the first time, so we will see if they send me anything.

In previous years, Pennsylvania's state Insurance Department (where I live), has posted the preliminary pricing requests from the various insurance companies some time in August on their departmental website. Then there is a review period before the final approved numbers are released to the public in mid-October. However, they release them in a fairly voluminous data format in a spreadsheet. You have to study it a bit to figure out what the pricing will be. But over the years, I have pretty well mastered how to decipher the data. I'm anxiously awaiting the initial August release.

 

[SecondCor521]

I have no idea yet. Idaho goes through a similar process: the insurers propose their rate changes, the state ACA folks adjust or approve, and rates go live in November on the website.

I am fairly sure that I will just stick with my Bronze HSA with the same insurer I've had for the last six years of ACA coverage. I'd expect my premium to be about what it was in early 2021 plus an age adjustment of perhaps $25-$50, so probably $300 a month or so. 53M.

 

[ShokWaveRider]

Whatever it is we will pay for DW for just one more year till Medicare.

Then I will take my SS at 70 and we will start withdrawing from our IRAs. Life will be good, not that it is not now, but it will be better at least from a Fat financial perspective.

 

[Aerides]

It's hard to even think about now, there is so much that changes between the proposed and approved.

Either it's bad, you get yourself in a state, and it's not so bad (or it is and stays bad and you've just annoyed yourself pre-emptively)
or
It's not bad, but it ends up being worse.

Either way, this falls into one of those categories of...since I can't do anything about it, I will wait until I have an actual plan in front of me and then decide. In November.

 

[jim584672]

Keeping in the subsidy zone insulates you from the increase mostly since the Silver benchmark is pegged at a set percentage of income.

 

[N02L84ER]

We were notified in May that the insurance company will not be offering plans next year. They had the least expensive plans offered for 2022 so I am sure we will pay more next year.

 

[Yoheadden]

https://www.healthaffairs.org/do/10.1377/forefront.20220628.782958/

This is an article about how the Feds need to act sooner, rather than later if they are going to extend the Premium Tax Credits since most people need the information to decide when enrollment time comes.
The Insurance Companies in my state (CT) just proposed a 20% increase for next year.

 

[aaronc879]

It doesn't matter how much my plan goes up. I will have a low enough income that I will have two plans to choose from that will each be $0 premium plus cost sharing which will make my deductible $250 or less and max OOP around $1,000.

 

[GTFan]

Yeah the insurance co's are in a pickle for 2023 until Congress decides to get off its butt about whether to extend the new ACA subsidies. The rates you will see are in flux until then.

 

[scrabbler1]

Yeah the insurance co's are in a pickle for 2023 until Congress decides to get off its butt about whether to extend the new ACA subsidies. The rates you will see are in flux until then.

Pardon my ignorance, but why should the amount of the federal subsidy play a role in what the insurance companies, who are regulated at the state level, wish to charge? All the subsidy determines is how much of the approved premium is paid by the insured and how much is paid by the federal government.

 

[aaronc879]

Yeah the insurance co's are in a pickle for 2023 until Congress decides to get off its butt about whether to extend the new ACA subsidies. The rates you will see are in flux until then.

No reason the amount charged by the insurance companies should be affected by the amount of subsidy people receive.

 

[USGrant1962]

Pardon my ignorance, but why should the amount of the federal subsidy play a role in what the insurance companies, who are regulated at the state level, wish to charge? All the subsidy determines is how much of the approved premium is paid by the insured and how much is paid by the federal government.

Yes, the premiums determine the subsidies - not the other way around.

EDIT - I think it is more accurate to say the premium of the second lowest cost silver plan determines the subsidies

 

[SJhawkins]

Keeping in the subsidy zone insulates you from the increase mostly since the Silver benchmark is pegged at a set percentage of income.

Learned something new, thanks.

We are not on ACA yet, hope it's still around in 5 years in the same form it is now, maybe wishful thinking!

 

[GTFan]

No reason the amount charged by the insurance companies should be affected by the amount of subsidy people receive.

All I can say is that I've seen at least one report that it does (on a weekly news show IIRC), and it's affecting/delaying the rates submitted for 2023. Have no idea why and they could be wrong.

 

[FIREd_2015]

"Covered California announced its plans and rates for the 2023 coverage year. The preliminary weighted average rate change is an increase of 6 percent..."

https://www.coveredca.com/newsroom/...tain-future-of-american-rescue-plan-benefits/

 

[Sarah S]

One way subsidy changes could affect premiums is that without subsidy some people will opt out of ACA especially in states with no penalty. Those people would mostly be those who believe they would not need as much healthcare as the premium costs. Those who are the sickest/ most expensive are going to continue to pay if they possibly can. Overall the pool becomes more expensive per person

 

[orchid55]

Other people opting out could be those with no assets to protect from a medical bankruptcy. When we were on unsubsidized ACA we referred to it as "bankruptcy protection" rather than health insurance. We had premiums averaging 18k per year and deductibles of 7k person. We always purchased it because we do have assets to protect, but others may not.

 

[erkevin]

The Dems managed to strongarm Joe Manchin into backing the new environment/ACA/prescription meds legislation. It extends the ACA subsidies for three more years (the subsidies that were introduced in the Covid relief package in 2021). It is going to be passed through budget reconciliation (simple majority), rather than straight vote (whereas 60 votes are needed in the senate).

 

[bltkmt]

The Dems managed to strongarm Joe Manchin into backing the new environment/ACA/prescription meds legislation. It extends the ACA subsidies for three more years (the subsidies that were introduced in the Covid relief package in 2021). It is going to be passed through budget reconciliation (simple majority), rather than straight vote (whereas 60 votes are need in the senate).

Thank goodness - hope it succeeds. It will get me that much closer to Medicare.

 

[erkevin]

Sinema is still a wildcard for the Dems

 

[Trailwalker]

The Dems managed to strongarm Joe Manchin into backing the new environment/ACA/prescription meds legislation. It extends the ACA subsidies for three more years (the subsidies that were introduced in the Covid relief package in 2021). It is going to be passed through budget reconciliation (simple majority), rather than straight vote (whereas 60 votes are needed in the senate).

I don't hear the fat lady singing yet, but I'll be cheering for selfish reasons if it actually gets extended. That's enough to get me to medicare.

 

[Alex The Great]

The Dems managed to strongarm Joe Manchin into backing the new environment/ACA/prescription meds legislation. It extends the ACA subsidies for three more years (the subsidies that were introduced in the Covid relief package in 2021). It is going to be passed through budget reconciliation (simple majority), rather than straight vote (whereas 60 votes are needed in the senate).

Regarding ACA subsidies: it is all about ACA cliff i.e. applicable to those with MAGI greater than $50K correct? I assume subsidies for people with income less than $50K will be in place anyway?

 

[erkevin]

The subsidies cover those with income in excess of 400% of the federal poverty level.