The costs for Health Insurance have increased this year and the effect s can be seen worldwide. The cost of the group health policies and the individual market both has increased. The KFF and the NCSL released a report about the increased rates on the ACA and their effect on American households. The costs have increased steadily for the past ten years. In 2016 the premiums for family policies reached up about 3% from 2015. And it in 2017 it has increased a huge of 25%.
Variations across the country
The ACA marketplace has been broken down into the country. When the numbers of offered policies are decreased, the companies offered policies only in some portions of state not in the whole country. The cost varied as like the number of insurance carrier. Though the average increase may be 25%, the eccentrics were extreme. In the Marketplace, Indianapolis saw a 4% decrease in their premiums, though Phoenix, Arizona has a shocking 145% increment.
The small Business HRA
There is good news for the small business employees, they who have fewer than 50 full-time-equivalent employees, can now offer the Small Business Health Reimbursement Arrangements (HRAs) to help the account health insurance costs. This HRA will provide the employees with flexibility to choose a health insurance plan that fits their needs. And they business owner will get to fix the monthly insurance costs without any shocking price hike. By providing this tax-free money to the employees toward their HRAs one can protect them against the growing costs.
The price hike in health insurance has been experienced by a lot of people but the small businesses have a new option to help their employees. The HRA can provide the benefits to their employees without the tension of the insurance. There is an average health insurance costs for both individual and family plans:
Average Health Insurance Cost for Individuals
Average individual premium (without subsidies) is much higher than the average premium for 2016 open enrollment
Average annual deductible for individual policies is a percent decrease since 2016.
The Health report also broke down for the average monthly premium costs for the individuals by the plans and the age.
Average Health Insurance Cost for Families
Average family premium (without subsidies) is much higher than the average premium for 2016 open enrollment.
Average annual deductible for families is a low increment since 2016.
The major issues of high price of the health insurance policies is that UnitedHealth and Aetna have withdrawn them from ACA marketplaces and the consumers have only fewer choices.