obamacare / ACA Individual Plan Premiums for 2021

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Topic Author
lgb
Posts: 104
Joined: Fri Mar 01, 2019 9:46 am

obamacare / ACA Individual Plan Premiums for 2021

Post by lgb »

Just curious - anyone else have significant monthly premium increases for 2021 where you have an 'Individual' plan covering a family of 4 (yourself, spouse and 2 children)"

Our has increased to:
$1,200 per month in 2019 ($14,400 per year)
$1,455 per month in 2020 ($17,460 per year)
$1,755 per month in 2021 ($21,060 per year)

None of the plans differ by more than say 100 bucks a month ($1,200 per year). So no real alternative to lower this. Not much change of actual coverage provided over this same three year time period. I believe in 2018 it was also like $300 less per month than $1,200 or just under $1,000 a month.

[political comment removed by admin LadyGeek]

Own my own business, have a spouse as only other full-time employee. Precludes us from getting a Group insurance plan. Insurance agent suggests hiring someone non-family so we could get a Group plan option. That's ridiculous - I don't need another employee.

Does the Group plan really lower this monthly/annual amount to pay for healthcare?

Since Obamacare, the options to use a private insurance off obamacare exchange has disappeared and they no longer sell insurance in our area - so now the only option is Obamacare and from like 1 normal company and 1 oddball no-name company. So much for competition across state lines, keeping your doctor (have lost all of them), keeping your plan (plans have only increased in premiums and deductibles rarely ever met as they're too high), and we didn't get to save $2,500 a year for a family of 4 ever - as you can see above - it's only increased.

Thoughts?
quantAndHold
Posts: 5174
Joined: Thu Sep 17, 2015 10:39 pm

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by quantAndHold »

$1755/month is $440 per person. The reason nobody is selling private insurance in your area is probably because they can’t sell it that cheap. I doubt you’d be able to get a small group plan for that cheap, either. The last employer based group plan I was in, in a group where 80% of the employees were under 30, was over $600 per person.

My 2021 premium went up $30, exactly what I would expect since I’m a year older than I was in 2020.

Health insurance is expensive because healthcare is expensive.
Yes, I’m really that pedantic.
Topic Author
lgb
Posts: 104
Joined: Fri Mar 01, 2019 9:46 am

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by lgb »

quantAndHold wrote: Fri Oct 30, 2020 11:58 am $1755/month is $440 per person. The reason nobody is selling private insurance in your area is probably because they can’t sell it that cheap. I doubt you’d be able to get a small group plan for that cheap, either. The last employer based group plan I was in, in a group where 80% of the employees were under 30, was over $600 per person.

My 2021 premium went up $30, exactly what I would expect since I’m a year older than I was in 2020.

Health insurance is expensive because healthcare is expensive.

Makes me wonder why they suggested getting an employee in order to get a group plan if it wouldn't amount to much difference! haha.. You're probably right - the reasonable Private insurance company is did the math long ago and said 'nope!' - I'm out!....
Thanks for the perspective of breaking it down per family member.. ($5,280 a year per person or a $900 per person year increase from the last year)
Ron Ronnerson
Posts: 1901
Joined: Sat Oct 26, 2013 6:53 pm
Location: Bay Area

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by Ron Ronnerson »

I am a public school teacher whose employer contributes nothing toward health insurance (employee must pay 100% of the cost of the premiums) so our family would be much worse off without the ACA. I sympathize with your situation as everyone's circumstances are different. Our MAGI has been in the $60k-$65k range over the past couple of years and our monthly premiums for a family of three (mid-40s couple with one child) have been:

2019 - $1430 for a gold plan ($1200 federal premium credit)
2020 - $1335 for a silver plan ($1290 federal premium credit and $40 state subsidy from California)
2021 - $1430 for a silver plan ($1260 federal premium credit and $50 state subsidy from California)

The difference in cost between a gold and silver plan made silver uncompetitive in 2019.

In 2020, we are paying a bit under $4/month to cover three people. I don't know what we would do without the ACA but, again, totally sympathize with those for whom it has not worked out well.

I wouldn't hold my breath waiting for laws to be revamped. Instead, we must figure out what the system is currently and do our best to navigate through it. In our case, that means putting $50k into retirement accounts each year to lower our MAGI enough to qualify for the tax credits.
User avatar
Artful Dodger
Posts: 1133
Joined: Thu Oct 20, 2016 12:56 pm

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by Artful Dodger »

I work in the group health field and understand your frustration. I just do group plans and not the individual coverage, but will often help people going onto the exchange to evaluate coverage.

Are you running your cost through the business and getting the self employed tax deduction? That should lower federal, and state taxes and possibly SE / FICA tax. If you have a HDHP/HSA plan, you'll get the additional tax deduction for the HSA contribution.

It certainly doesn't make sense to add coverage for another employee. I don't know your actual plan benefits, but there isn't that much difference between what you are paying and the average family plan premium in a group. Really, most of my groups have higher family premiums than what you are paying.

As quantAndHold said - "Health insurance is expensive because healthcare is expensive".

A 20% increase does seem high. I thought I'd seen reports earlier about most areas getting a slight decrease in plan costs. In my local area, we have two new companies coming in with lower cost plans than BCBS which has been the main carrier, though both are HMOs with smaller networks.

Out of curiosity, who's the new oddball company?
nalor511
Posts: 1127
Joined: Mon Jul 27, 2015 1:00 am

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by nalor511 »

Even though I'm constantly reading in the news that this year ACA premiums went up less than 1% (or even slightly down in some cases), ours went up 10% across all plans available. The good news is that subsidies are still a % of your income, rather than a % of the premium cost, so, it's something.
InMyDreams
Posts: 944
Joined: Tue Feb 28, 2017 11:35 am

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by InMyDreams »

My former employer offers early retirees access to the company's plan until Medicare eligible (ACA compliant, not a marketplace plan).

My premium per month 2020: $890
My premium per month 2021: $1000.

Both of those premiums are less than the max charge d/t length of service.

It qualifies as a HDHP but my MOOP is still pretty low compared to some.

I'm grateful I hit Medicare in 2021.
westie
Posts: 542
Joined: Thu Jan 19, 2012 8:00 am

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by westie »

With the ACA in 2020, the average family of four has an average monthly premium of $1437 per month, or $17,244 annually and an average deductible of $7,767.

Figure on $25,000 a year for an unsubsidized plan for a family of four.

https://www.benefitspro.com/2020/06/22/ ... n-in-2020/
shockwavesfan
Posts: 27
Joined: Tue Sep 15, 2020 10:44 am

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by shockwavesfan »

I'm in a pretty similar situation as you. Small business owner with a couple of employees. Prior to the ACA my family (Me, Spouse, 2 kids) and one other employee needed coverage so we just bought an affordable policy for my family. Once ACA was enacted the coverage costs for my family more than doubled in two years, we lost a lot of the options we had, and we made too much for any type of credits. It was a disaster for us.

We switched to a group plan since there was another employee that also needed coverage. Currently with a decent PPO with a high deductible (4,000 ind./$8,000 family) my family is paying $1,562.80 a month in PA). I'm not sure what this will increase to in 2021.
User avatar
Bogle7
Posts: 827
Joined: Fri May 11, 2018 9:33 am
Location: Mountain state

Love Obamacare

Post by Bogle7 »

Down 1.5% for 2021. Last year was a 9% drop.
Kaiser.
Happy.
Last edited by Bogle7 on Fri Oct 30, 2020 2:36 pm, edited 1 time in total.
A militant atheist.
vtMaps
Posts: 755
Joined: Tue Oct 14, 2008 12:05 pm
Location: central Vermont

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by vtMaps »

Artful Dodger wrote: Fri Oct 30, 2020 12:52 pm Are you running your cost through the business and getting the self employed tax deduction? That should lower federal, and state taxes and possibly SE / FICA tax.
The Self employed health care premium deduction does not lower the business net income, and thus does not lower the SE/FICA tax. The Self employed health care premium deduction can be taken for your whole family's healthcare premiums.

Note that only premiums are deductible, the Self employed health care premium deduction does not include copays, coinsurance, or other OOP (out-of-pocket) expenses. Sometimes a more expensive plan (higher premiums with lower OOP expenses) is a better deal.

--vtMaps
Historical Fact: Justin Smith Morrill represented Vermont in congress, had a dog named 'Trump', and wrote legislation establishing the Land Grant Colleges.
curmudgeon
Posts: 2132
Joined: Thu Jun 20, 2013 11:00 pm

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by curmudgeon »

My Kaiser plan went up 10% this year (CA), but I suspect a good chunk of that was the second of us bumping into the "over 60" rate bracket. Your increase in age is often a hidden factor in the annual rate increases.

If the cost is particularly painful to you, one of the few alternatives is the "Health Care Sharing Ministry" plans, but they are not insurance in the traditional sense (lots of restrictions and limitations), and I would advise a lot of research before going that route.
talzara
Posts: 1220
Joined: Thu Feb 12, 2009 7:40 pm

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by talzara »

nalor511 wrote: Fri Oct 30, 2020 1:08 pm Even though I'm constantly reading in the news that this year ACA premiums went up less than 1% (or even slightly down in some cases), ours went up 10% across all plans available. The good news is that subsidies are still a % of your income, rather than a % of the premium cost, so, it's something.
Here is a table of rate changes for all ACA plans for 2021: https://www.kff.org/private-insurance/i ... -on-rates/

The rate changes vary from -42.04% to +25.60%. The OP is at the higher end of the range. You will also be one year older, so you will experience an increased age factor on top of the overall rate change.
quantAndHold
Posts: 5174
Joined: Thu Sep 17, 2015 10:39 pm

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by quantAndHold »

talzara wrote: Fri Oct 30, 2020 2:28 pm
nalor511 wrote: Fri Oct 30, 2020 1:08 pm Even though I'm constantly reading in the news that this year ACA premiums went up less than 1% (or even slightly down in some cases), ours went up 10% across all plans available. The good news is that subsidies are still a % of your income, rather than a % of the premium cost, so, it's something.
Here is a table of rate changes for all ACA plans for 2021: https://www.kff.org/private-insurance/i ... -on-rates/

The rate changes vary from -42.04% to +25.60%. The OP is at the higher end of the range. You will also be one year older, so you will experience an increased age factor on top of the overall rate change.
Wow, good find. According to that chart mine, (Kaiser California) apparently increased by 1%. My personal premium increased by 5%, so I assume it’s 1% for an overall rate increase, and 4% because I’m getting old (late 50’s).
Yes, I’m really that pedantic.
User avatar
LilyFleur
Posts: 1592
Joined: Fri Mar 02, 2018 10:36 pm

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by LilyFleur »

vtMaps wrote: Fri Oct 30, 2020 2:13 pm
Artful Dodger wrote: Fri Oct 30, 2020 12:52 pm Are you running your cost through the business and getting the self employed tax deduction? That should lower federal, and state taxes and possibly SE / FICA tax.
The Self employed health care premium deduction does not lower the business net income, and thus does not lower the SE/FICA tax. The Self employed health care premium deduction can be taken for your whole family's healthcare premiums.

Note that only premiums are deductible, the Self employed health care premium deduction does not include copays, coinsurance, or other OOP (out-of-pocket) expenses. Sometimes a more expensive plan (higher premiums with lower OOP expenses) is a better deal.

--vtMaps
Even without lowering the SE/FICA tax, it is much better to use health care premiums as a business expense than those of us who pay with post-tax dollars for very expensive healthcare.
ccf
Posts: 269
Joined: Mon Mar 09, 2015 9:13 pm

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by ccf »

shockwavesfan wrote: Fri Oct 30, 2020 1:41 pm I'm in a pretty similar situation as you. Small business owner with a couple of employees.
I'm not sure if this would help you, but my wife and I have a small business and we insure 3 full time employees. Everyone is remote and has different needs with respect to covered doctors, etc.

We purchase the absolute cheapest plan available for our family ($800/month, mid 40s, two kids) and cover our employees health care via a QSEHRA.

We give them the maximum reimbursement and they can use it for any expenses, including insurance premiums. The maximums are $437 per month for singles and and $883 for employees with a family.

(I'm in Massachusetts)
Last edited by ccf on Fri Oct 30, 2020 5:57 pm, edited 3 times in total.
Lee_WSP
Posts: 3784
Joined: Fri Apr 19, 2019 5:15 pm
Location: Arizona

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by Lee_WSP »

lgb wrote: Fri Oct 30, 2020 11:39 am

Does the Group plan really lower this monthly/annual amount to pay for healthcare?
I see no one has answered this. It probably depends on the state, but no, it is not cheaper unless you have a lot of employees and can throw some weight around. Otherwise, the only benefit is access to PPO plans that may not be on the market place.

The downside is you're going to pay more because you need to pay half their premiums.
clip651
Posts: 824
Joined: Thu Oct 02, 2014 11:02 am

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by clip651 »

As a single person, my ACA plan is over $600 a month for an HMO with a narrow network. So your monthly cost for 4 people doesn't look high to me from that perspective. But as a yearly expense, yep, it's a lot. All the premiums are high, because as another poster noted, healthcare is expensive.

Preliminary info from the exchange looks like my cost will go down a few percent this year. But the premiums went up the past several years, I think it was more like $450 a couple of years ago. A lot of this varies by state, by county, by which insurers are in your market, etc. My area has had multiple smaller carriers enter and then leave the market over the years. (One went bankrupt and dropped me and everyone else they had covered mid year. That was fun.) Right now we just have two or three big names, and lots of the plans are HMO plans with narrow networks.

The big plus for me are the subsidies depending on income level. And the guarantee that I can at least purchase some sort of coverage. Without mandates, there'd be no guarantee of that, even. Pre-ACA there was only one company that would cover me, at a very high premium and high deductible due to "pre-existing condition" - in my case, it was just arthritis!
Seasonal
Posts: 2269
Joined: Sun May 21, 2017 1:49 pm

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by Seasonal »

Median ACA increase for 2021 is 1.1%. https://www.kff.org/private-insurance/i ... -on-rates/
User avatar
crystalbank
Posts: 370
Joined: Wed Nov 01, 2017 12:21 am

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by crystalbank »

As a self employed person, I'm really pissed that our family's premium keeps increasing year over year. But I remember the good old days of pre-ACA, when signing up for insurance as a self employed person is a total PITA with so many coverage exclusions.

I've come to accept these high premiums as a 'health care' tax. Atleast I can get a subsidy if my income suddenly drops.
TravelGeek
Posts: 4014
Joined: Sat Oct 25, 2014 3:23 pm

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by TravelGeek »

talzara wrote: Fri Oct 30, 2020 2:28 pm
Here is a table of rate changes for all ACA plans for 2021: https://www.kff.org/private-insurance/i ... -on-rates/

The rate changes vary from -42.04% to +25.60%. The OP is at the higher end of the range. You will also be one year older, so you will experience an increased age factor on top of the overall rate change.
Shows 4% increase for my insurer/state.

In reality, our premium is going from $1194 to $1322, so about 10.7% increase. I assume the number in the table is an average across all plans from the insurer. But thanks for sharing the article, bookmarked for weekend reading.
mkc
Posts: 350
Joined: Wed Apr 17, 2013 2:59 pm

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by mkc »

Shows a 2.9% increase for my state/provider.

Actual is 16.8% increase for the same Bronze plan which now has a higher deductible and annual out of pocket.
fortunefavored
Posts: 238
Joined: Tue Jun 02, 2015 8:18 pm

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by fortunefavored »

Given healthcare expenses have been rising ~6% per year since 2010, why would we expect anything less than that?

Additionally those "old" plans were pretty terrible, they were really only useful if you were healthy and never planned to get sick. Otherwise you'd be abandoned in a pool of other sick people and your rates would be raised to the sky (or had max payouts of $1M or less.)

When/until something is done about the cost side of the equation, we're looking at increases forever. I'm assuming 6% YoY myself in absence of other data.
talzara
Posts: 1220
Joined: Thu Feb 12, 2009 7:40 pm

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by talzara »

TravelGeek wrote: Fri Oct 30, 2020 6:08 pm In reality, our premium is going from $1194 to $1322, so about 10.7% increase. I assume the number in the table is an average across all plans from the insurer. But thanks for sharing the article, bookmarked for weekend reading.
Yes, different plans from the same insurer can have different rate changes. In some states, even different metal levels of the same plan can have different rate changes.
talzara
Posts: 1220
Joined: Thu Feb 12, 2009 7:40 pm

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by talzara »

mkc wrote: Fri Oct 30, 2020 6:53 pm Shows a 2.9% increase for my state/provider.

Actual is 16.8% increase for the same Bronze plan which now has a higher deductible and annual out of pocket.
You didn't say which state and provider this is. The KFF table lists two companies with +2.9% rate increases.

USAble Mutual Insurance filed an overall rate change of +2.90% in Arkansas, with a range of -0.77% to +13.88%. Add another +3% for being one year older, and the high end would be +16.88%. Most of the numbers in the rate filing have been redacted, so we do not know the details: https://insurance.arkansas.gov/uploads/ ... 412314.pdf
atikovi
Posts: 1020
Joined: Tue Sep 10, 2019 7:20 pm
Location: Suburban Washington DC

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by atikovi »

My rates for BC has been $80 a month this year down from $230 last year thanks to a subsidy.
curmudgeon
Posts: 2132
Joined: Thu Jun 20, 2013 11:00 pm

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by curmudgeon »

quantAndHold wrote: Fri Oct 30, 2020 2:34 pm
talzara wrote: Fri Oct 30, 2020 2:28 pm
nalor511 wrote: Fri Oct 30, 2020 1:08 pm Even though I'm constantly reading in the news that this year ACA premiums went up less than 1% (or even slightly down in some cases), ours went up 10% across all plans available. The good news is that subsidies are still a % of your income, rather than a % of the premium cost, so, it's something.
Here is a table of rate changes for all ACA plans for 2021: https://www.kff.org/private-insurance/i ... -on-rates/

The rate changes vary from -42.04% to +25.60%. The OP is at the higher end of the range. You will also be one year older, so you will experience an increased age factor on top of the overall rate change.
Wow, good find. According to that chart mine, (Kaiser California) apparently increased by 1%. My personal premium increased by 5%, so I assume it’s 1% for an overall rate increase, and 4% because I’m getting old (late 50’s).
I ran a quick check on my (Kaiser CA HSA plan), using the exact same (60's) age to get a direct comparison between 2020 and 2021 rates. The increase this year is 7.6% (and $100 higher deductible). Maybe the increase is more skewed by age this year because of covid complications being higher with an older group.
Katietsu
Posts: 4336
Joined: Sun Sep 22, 2013 1:48 am

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by Katietsu »

lgb wrote: Fri Oct 30, 2020 11:39 am

Since Obamacare, the options to use a private insurance off obamacare exchange has disappeared and they no longer sell insurance in our area - so now the only option is Obamacare and from like 1 normal company and 1 oddball no-name company. So much for competition across state lines, keeping your doctor (have lost all of them), keeping your plan (plans have only increased in premiums and deductibles rarely ever met as they're too high), and we didn't get to save $2,500 a year for a family of 4 ever - as you can see above - it's only increased.

Thoughts?
I do not know if it will make you feel any better, but part of your increase is related to age which would have been steeper before the ACA. Before ACA, the cost of a private insurance policy could be over 5 times higher for a person in their sixties vs one in their twenties. So, if you and your spouse were paying $8000 a year as a young couple, the older couple might have been offered the same policy at $40,000 a year. The ACA plans will still increase with age, but less drastically. So maybe this will help in the future if this structure remains in place.

And if your older plan was much cheaper on an age adjusted and medical inflation adjusted basis, then it probably did not provide the same amount of coverage. Since you are not meeting deductibles, you have been fortunate to be healthy. Before the ACA, I saw preemies who had used up their lifetime benefits before they even left the hospital. And I saw people who thought they had a good policy until they needed an expensive pharmaceutical. Even today, there are people being bankrupted from a medical event because they bought a short term policy without realizing it did not have the same coverage as their marketplace plan.

Hopefully, we will all have better options in the future.
talzara
Posts: 1220
Joined: Thu Feb 12, 2009 7:40 pm

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by talzara »

curmudgeon wrote: Fri Oct 30, 2020 9:24 pm
quantAndHold wrote: Fri Oct 30, 2020 2:34 pm Wow, good find. According to that chart mine, (Kaiser California) apparently increased by 1%. My personal premium increased by 5%, so I assume it’s 1% for an overall rate increase, and 4% because I’m getting old (late 50’s).
I ran a quick check on my (Kaiser CA HSA plan), using the exact same (60's) age to get a direct comparison between 2020 and 2021 rates. The increase this year is 7.6% (and $100 higher deductible). Maybe the increase is more skewed by age this year because of covid complications being higher with an older group.
There is no age effect from the COVID-19 pandemic. Kaiser Permanente uses the federal age curve, which is not adjusted every year. Since the ACA came into effect, the federal age curve has only been adjusted once in 2018.

The rate increase from age 60 to 61 is +3.5%, so your 7.6% rate increase would be a +4.1% rate increase for the plan.

Kaiser filed a +0.8% rate change for California, with a range of -14.5% to +8.4%. Most of the rate decreases were in Southern California.

Here's the redacted rate filing: https://ratereview.healthcare.gov/files ... randum.pdf
talzara
Posts: 1220
Joined: Thu Feb 12, 2009 7:40 pm

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by talzara »

Katietsu wrote: Fri Oct 30, 2020 9:53 pm I do not know if it will make you feel any better, but part of your increase is related to age which would have been steeper before the ACA. Before ACA, the cost of a private insurance policy could be over 5 times higher for a person in their sixties vs one in their twenties. So, if you and your spouse were paying $8000 a year as a young couple, the older couple might have been offered the same policy at $40,000 a year. The ACA plans will still increase with age, but less drastically. So maybe this will help in the future if this structure remains in place.
The ACA limits the age curve to a factor of 3. A 64-year-old will only pay 3 times as much as a 21-year-old.

The current federal age curve was adopted in 2018. It is given on page 4 of the CMS notice: https://www.cms.gov/CCIIO/Resources/Reg ... -16-16.pdf

The ACA allows states to select flatter age curves. For example, New York is community-rated, so a 64-year-old pays the same as a 21-year-old.
michaeljc70
Posts: 7389
Joined: Thu Oct 15, 2015 3:53 pm

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by michaeljc70 »

As pointed out above, there is probably some small increase due to getting older. And I know this is not what you want to hear and I can sympathize with you, but given the limits on what can be charged under the ACA (medical loss ratio), they probably undercharged (overall) in prior years given healthcare inflation has been fairly low. If they had charged $1500 instead of $1200 in 2019 and raised it only a few percent each year would you feel better?

I haven't received my notice yet for 2021 prices so I don't know how that will go in my case. I also don't even know if it will even be comparable because the plans often change at least slightly. The networks on all but the most expensive plans here are abysmal.
TravelGeek
Posts: 4014
Joined: Sat Oct 25, 2014 3:23 pm

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by TravelGeek »

michaeljc70 wrote: Sat Oct 31, 2020 11:59 am I haven't received my notice yet for 2021 prices so I don't know how that will go in my case. I also don't even know if it will even be comparable because the plans often change at least slightly. The networks on all but the most expensive plans here are abysmal.
Does healthcare.gov or your state exchange not show you the 2021 prices yet?
MathIsMyWayr
Posts: 2699
Joined: Mon Mar 27, 2017 10:47 pm
Location: CA

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by MathIsMyWayr »

Ron Ronnerson wrote: Fri Oct 30, 2020 12:22 pm I am a public school teacher whose employer contributes nothing toward health insurance (employee must pay 100% of the cost of the premiums) so our family would be much worse off without the ACA. I sympathize with your situation as everyone's circumstances are different. Our MAGI has been in the $60k-$65k range over the past couple of years and our monthly premiums for a family of three (mid-40s couple with one child) have been:

2019 - $1430 for a gold plan ($1200 federal premium credit)
2020 - $1335 for a silver plan ($1290 federal premium credit and $40 state subsidy from California)
2021 - $1430 for a silver plan ($1260 federal premium credit and $50 state subsidy from California)

The difference in cost between a gold and silver plan made silver uncompetitive in 2019.

In 2020, we are paying a bit under $4/month to cover three people. I don't know what we would do without the ACA but, again, totally sympathize with those for whom it has not worked out well.

I wouldn't hold my breath waiting for laws to be revamped. Instead, we must figure out what the system is currently and do our best to navigate through it. In our case, that means putting $50k into retirement accounts each year to lower our MAGI enough to qualify for the tax credits.
It is an irony that many complain about the high cost of health insurance while they gladly pay for an automobile insurance. Healthcare is expensive in this country, period. Somebody has to pay for it except themselves. What can you buy for $4 these days?
Sorry, a Happy Meal at McDonald's for mighty $4! :wink:

Christine Benz of Morningstar interview with Jim Dahle, MD, of White Coat Investor.
https://www.morningstar.com/podcasts/the-long-view/72
Dahle: I think a couple of things. The first thing is people need to realize that healthcare is expensive. It's interesting if you look at people's budgets, sometimes they budget less money for healthcare than they do for their cell phone, and they need to realize that this is a major budget item. This is like your rent. This is like your food. It's not a small-budget item. And I think people have been protected from that for too long by the fact that their employers are paying 50% or 80% or 100% of their health insurance premiums and they haven't realized that it's never going to be cheap. There's highly trained people doing very high-liability work 24/7, 365, using very expensive technologies. Healthcare is never going to be cheap. And so, I think that mindset change needs to take place, that we need to realize that a big part of our national dollar and our individual budgets is going to go toward healthcare.
smitcat
Posts: 6999
Joined: Mon Nov 07, 2016 10:51 am

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by smitcat »

MathIsMyWayr wrote: Sat Oct 31, 2020 2:35 pm
Ron Ronnerson wrote: Fri Oct 30, 2020 12:22 pm I am a public school teacher whose employer contributes nothing toward health insurance (employee must pay 100% of the cost of the premiums) so our family would be much worse off without the ACA. I sympathize with your situation as everyone's circumstances are different. Our MAGI has been in the $60k-$65k range over the past couple of years and our monthly premiums for a family of three (mid-40s couple with one child) have been:

2019 - $1430 for a gold plan ($1200 federal premium credit)
2020 - $1335 for a silver plan ($1290 federal premium credit and $40 state subsidy from California)
2021 - $1430 for a silver plan ($1260 federal premium credit and $50 state subsidy from California)

The difference in cost between a gold and silver plan made silver uncompetitive in 2019.

In 2020, we are paying a bit under $4/month to cover three people. I don't know what we would do without the ACA but, again, totally sympathize with those for whom it has not worked out well.

I wouldn't hold my breath waiting for laws to be revamped. Instead, we must figure out what the system is currently and do our best to navigate through it. In our case, that means putting $50k into retirement accounts each year to lower our MAGI enough to qualify for the tax credits.
It is an irony that many complain about the high cost of health insurance while they gladly pay for an automobile insurance. Healthcare is expensive in this country, period. Somebody has to pay for it except themselves. What can you buy for $4 these days?
Sorry, a Happy Meal at McDonald's for mighty $4! :wink:

Christine Benz of Morningstar interview with Jim Dahle, MD, of White Coat Investor.
https://www.morningstar.com/podcasts/the-long-view/72
Dahle: I think a couple of things. The first thing is people need to realize that healthcare is expensive. It's interesting if you look at people's budgets, sometimes they budget less money for healthcare than they do for their cell phone, and they need to realize that this is a major budget item. This is like your rent. This is like your food. It's not a small-budget item. And I think people have been protected from that for too long by the fact that their employers are paying 50% or 80% or 100% of their health insurance premiums and they haven't realized that it's never going to be cheap. There's highly trained people doing very high-liability work 24/7, 365, using very expensive technologies. Healthcare is never going to be cheap. And so, I think that mindset change needs to take place, that we need to realize that a big part of our national dollar and our individual budgets is going to go toward healthcare.
"It is an irony that many complain about the high cost of health insurance while they gladly pay for an automobile insurance"
Unlike car insurance health care is no longer an insurance it is a tax.
Ron Ronnerson
Posts: 1901
Joined: Sat Oct 26, 2013 6:53 pm
Location: Bay Area

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by Ron Ronnerson »

MathIsMyWayr wrote: Sat Oct 31, 2020 2:35 pm
Ron Ronnerson wrote: Fri Oct 30, 2020 12:22 pm I am a public school teacher whose employer contributes nothing toward health insurance (employee must pay 100% of the cost of the premiums) so our family would be much worse off without the ACA. I sympathize with your situation as everyone's circumstances are different. Our MAGI has been in the $60k-$65k range over the past couple of years and our monthly premiums for a family of three (mid-40s couple with one child) have been:

2019 - $1430 for a gold plan ($1200 federal premium credit)
2020 - $1335 for a silver plan ($1290 federal premium credit and $40 state subsidy from California)
2021 - $1430 for a silver plan ($1260 federal premium credit and $50 state subsidy from California)

The difference in cost between a gold and silver plan made silver uncompetitive in 2019.

In 2020, we are paying a bit under $4/month to cover three people. I don't know what we would do without the ACA but, again, totally sympathize with those for whom it has not worked out well.

I wouldn't hold my breath waiting for laws to be revamped. Instead, we must figure out what the system is currently and do our best to navigate through it. In our case, that means putting $50k into retirement accounts each year to lower our MAGI enough to qualify for the tax credits.
It is an irony that many complain about the high cost of health insurance while they gladly pay for an automobile insurance. Healthcare is expensive in this country, period. Somebody has to pay for it except themselves. What can you buy for $4 these days?
Sorry, a Happy Meal at McDonald's for mighty $4! :wink:
Our MAGI is probably going to be a bit lower this year than I had originally projected when signing up for insurance on the exchange. When we file taxes early next year, the cost of the insurance for us will actually come to $3.00 for the family. We have three people in our family, so it's a $1/month/person for our share of the cost for a silver plan at Kaiser in the Bay Area. We usually get the quarter pounder with cheese happy meal at McDonalds. That comes to about $6.30 after tax and that just for one person! A happy meal is way more expensive. However, our share of the premiums next year will go from $3/month for the family to $120/month. Health insurance will literally cost us 40 times more in 2021 than in does in 2020. Numbers are fun.
michaeljc70
Posts: 7389
Joined: Thu Oct 15, 2015 3:53 pm

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by michaeljc70 »

TravelGeek wrote: Sat Oct 31, 2020 1:42 pm
michaeljc70 wrote: Sat Oct 31, 2020 11:59 am I haven't received my notice yet for 2021 prices so I don't know how that will go in my case. I also don't even know if it will even be comparable because the plans often change at least slightly. The networks on all but the most expensive plans here are abysmal.
Does healthcare.gov or your state exchange not show you the 2021 prices yet?
Open enrollment starts tomorrow. I don't see 2021 prices/plans yet. I know you can see them on another non-government site, but I haven't compared everything to see if it is exactly the same plan. A couple days won't make a difference.....the disappointment can wait :shock:.
nalor511
Posts: 1127
Joined: Mon Jul 27, 2015 1:00 am

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by nalor511 »

Seasonal wrote: Fri Oct 30, 2020 3:42 pm Median ACA increase for 2021 is 1.1%. https://www.kff.org/private-insurance/i ... -on-rates/
Such garbage. Showing 1% in the table, 10% in real life
Seasonal
Posts: 2269
Joined: Sun May 21, 2017 1:49 pm

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by Seasonal »

nalor511 wrote: Sat Oct 31, 2020 6:00 pm
Seasonal wrote: Fri Oct 30, 2020 3:42 pm Median ACA increase for 2021 is 1.1%. https://www.kff.org/private-insurance/i ... -on-rates/
Such garbage. Showing 1% in the table, 10% in real life
Is that the result of your 50 state survey? If so, please post your list.
User avatar
rick0
Posts: 84
Joined: Thu Jan 31, 2013 10:54 pm
Location: WA

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by rick0 »

I guess I'm another one of the rare lucky ones:

ACA in 2020 : $685/m
ACA in 2021 : $672/m

I looked for alternatives, but ended up keeping the same plan.
the way
Posts: 427
Joined: Sat Oct 26, 2019 6:00 pm

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by the way »

Seasonal wrote: Sat Oct 31, 2020 7:05 pm
nalor511 wrote: Sat Oct 31, 2020 6:00 pm
Seasonal wrote: Fri Oct 30, 2020 3:42 pm Median ACA increase for 2021 is 1.1%. https://www.kff.org/private-insurance/i ... -on-rates/
Such garbage. Showing 1% in the table, 10% in real life
Is that the result of your 50 state survey? If so, please post your list.
I guess he means the chart cites a 1% increase for his carrier, but his personal rate is going up 10%. Mine also is listed at 1% but is actually going from 615 to 691, a 12.4% increase! (If I hadn't aged a year it would be 662, a 7.6% increase.)

They should explain how they got the 1% number. Every year mine is much higher than what they report.
nalor511
Posts: 1127
Joined: Mon Jul 27, 2015 1:00 am

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by nalor511 »

the way wrote: Sun Nov 01, 2020 1:09 am
Seasonal wrote: Sat Oct 31, 2020 7:05 pm
nalor511 wrote: Sat Oct 31, 2020 6:00 pm
Seasonal wrote: Fri Oct 30, 2020 3:42 pm Median ACA increase for 2021 is 1.1%. https://www.kff.org/private-insurance/i ... -on-rates/
Such garbage. Showing 1% in the table, 10% in real life
Is that the result of your 50 state survey? If so, please post your list.
I guess he means the chart cites a 1% increase for his carrier, but his personal rate is going up 10%. Mine also is listed at 1% but is actually going from 615 to 691, a 12.4% increase! (If I hadn't aged a year it would be 662, a 7.6% increase.)

They should explain how they got the 1% number. Every year mine is much higher than what they report.
Yes that is what I had meant, no offense to your number source, offense to the averaging sleight of hand the carriers are using
Seasonal
Posts: 2269
Joined: Sun May 21, 2017 1:49 pm

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by Seasonal »

nalor511 wrote: Sun Nov 01, 2020 1:17 am
the way wrote: Sun Nov 01, 2020 1:09 am
Seasonal wrote: Sat Oct 31, 2020 7:05 pm
nalor511 wrote: Sat Oct 31, 2020 6:00 pm
Seasonal wrote: Fri Oct 30, 2020 3:42 pm Median ACA increase for 2021 is 1.1%. https://www.kff.org/private-insurance/i ... -on-rates/
Such garbage. Showing 1% in the table, 10% in real life
Is that the result of your 50 state survey? If so, please post your list.
I guess he means the chart cites a 1% increase for his carrier, but his personal rate is going up 10%. Mine also is listed at 1% but is actually going from 615 to 691, a 12.4% increase! (If I hadn't aged a year it would be 662, a 7.6% increase.)

They should explain how they got the 1% number. Every year mine is much higher than what they report.
Yes that is what I had meant, no offense to your number source, offense to the averaging sleight of hand the carriers are using
1.1% is the median. That means half had higher numbers and half had lower numbers. They explain their basic methodology in the article.
vested1
Posts: 2327
Joined: Wed Jan 04, 2012 4:20 pm

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by vested1 »

smitcat wrote: Sat Oct 31, 2020 2:41 pm
MathIsMyWayr wrote: Sat Oct 31, 2020 2:35 pm
Ron Ronnerson wrote: Fri Oct 30, 2020 12:22 pm I am a public school teacher whose employer contributes nothing toward health insurance (employee must pay 100% of the cost of the premiums) so our family would be much worse off without the ACA. I sympathize with your situation as everyone's circumstances are different. Our MAGI has been in the $60k-$65k range over the past couple of years and our monthly premiums for a family of three (mid-40s couple with one child) have been:

2019 - $1430 for a gold plan ($1200 federal premium credit)
2020 - $1335 for a silver plan ($1290 federal premium credit and $40 state subsidy from California)
2021 - $1430 for a silver plan ($1260 federal premium credit and $50 state subsidy from California)

The difference in cost between a gold and silver plan made silver uncompetitive in 2019.

In 2020, we are paying a bit under $4/month to cover three people. I don't know what we would do without the ACA but, again, totally sympathize with those for whom it has not worked out well.

I wouldn't hold my breath waiting for laws to be revamped. Instead, we must figure out what the system is currently and do our best to navigate through it. In our case, that means putting $50k into retirement accounts each year to lower our MAGI enough to qualify for the tax credits.
It is an irony that many complain about the high cost of health insurance while they gladly pay for an automobile insurance. Healthcare is expensive in this country, period. Somebody has to pay for it except themselves. What can you buy for $4 these days?
Sorry, a Happy Meal at McDonald's for mighty $4! :wink:

Christine Benz of Morningstar interview with Jim Dahle, MD, of White Coat Investor.
https://www.morningstar.com/podcasts/the-long-view/72
Dahle: I think a couple of things. The first thing is people need to realize that healthcare is expensive. It's interesting if you look at people's budgets, sometimes they budget less money for healthcare than they do for their cell phone, and they need to realize that this is a major budget item. This is like your rent. This is like your food. It's not a small-budget item. And I think people have been protected from that for too long by the fact that their employers are paying 50% or 80% or 100% of their health insurance premiums and they haven't realized that it's never going to be cheap. There's highly trained people doing very high-liability work 24/7, 365, using very expensive technologies. Healthcare is never going to be cheap. And so, I think that mindset change needs to take place, that we need to realize that a big part of our national dollar and our individual budgets is going to go toward healthcare.
"It is an irony that many complain about the high cost of health insurance while they gladly pay for an automobile insurance"
Unlike car insurance health care is no longer an insurance it is a tax.
Plus the fact that no one should be expected to pay $1,430 a month for car insurance just because their family of four rides in the car.

Since we can only comment on settled law, it should be acceptable to mention that these increases, in some part, had been expected with the SCOTUS decision to repeal the individual mandate. A simple search on Google will reveal many articles from independent sources that point out the inevitability of rising ACA premiums resulting from that change.

Paying a king's ransom for a basic need just because you are not on Medicare or because everyone else is paying a comparable amount is admitting defeat IMHO. I refuse to abandon hope that health care costs will someday be less of a concern for all of us.

Why should health care coverage be expected to outpace the cost of a mortgage? It's too bad that health care premiums, copays, and deductibles have become the most expensive item on almost everyone's budget, regardless of age, eclipsing the top spot once held by mortgages or rent, and that everyone should just accept the fact that we are expected to shut up and pay up, regardless of the fact that health care costs far outpace the rate of inflation.
EnjoyIt
Posts: 5366
Joined: Sun Dec 29, 2013 8:06 pm

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by EnjoyIt »

MathIsMyWayr wrote: Sat Oct 31, 2020 2:35 pm
Ron Ronnerson wrote: Fri Oct 30, 2020 12:22 pm I am a public school teacher whose employer contributes nothing toward health insurance (employee must pay 100% of the cost of the premiums) so our family would be much worse off without the ACA. I sympathize with your situation as everyone's circumstances are different. Our MAGI has been in the $60k-$65k range over the past couple of years and our monthly premiums for a family of three (mid-40s couple with one child) have been:

2019 - $1430 for a gold plan ($1200 federal premium credit)
2020 - $1335 for a silver plan ($1290 federal premium credit and $40 state subsidy from California)
2021 - $1430 for a silver plan ($1260 federal premium credit and $50 state subsidy from California)

The difference in cost between a gold and silver plan made silver uncompetitive in 2019.

In 2020, we are paying a bit under $4/month to cover three people. I don't know what we would do without the ACA but, again, totally sympathize with those for whom it has not worked out well.

I wouldn't hold my breath waiting for laws to be revamped. Instead, we must figure out what the system is currently and do our best to navigate through it. In our case, that means putting $50k into retirement accounts each year to lower our MAGI enough to qualify for the tax credits.
It is an irony that many complain about the high cost of health insurance while they gladly pay for an automobile insurance. Healthcare is expensive in this country, period. Somebody has to pay for it except themselves. What can you buy for $4 these days?
Sorry, a Happy Meal at McDonald's for mighty $4! :wink:

Christine Benz of Morningstar interview with Jim Dahle, MD, of White Coat Investor.
https://www.morningstar.com/podcasts/the-long-view/72
Dahle: I think a couple of things. The first thing is people need to realize that healthcare is expensive. It's interesting if you look at people's budgets, sometimes they budget less money for healthcare than they do for their cell phone, and they need to realize that this is a major budget item. This is like your rent. This is like your food. It's not a small-budget item. And I think people have been protected from that for too long by the fact that their employers are paying 50% or 80% or 100% of their health insurance premiums and they haven't realized that it's never going to be cheap. There's highly trained people doing very high-liability work 24/7, 365, using very expensive technologies. Healthcare is never going to be cheap. And so, I think that mindset change needs to take place, that we need to realize that a big part of our national dollar and our individual budgets is going to go toward healthcare.
This is such a mistake. Healthcare is expensive because we the people have allowed it to get so expensive. There is a reason why Americans pay more for less. We elect politicians that just push the cost to different subsets of the population without ever addressing the cost itself. The winners are the insurance companies and pharma. The loosers are the middle class. We can make healthcare less expensive by allowing Americans to buy drugs overseas, by eliminating the overhead and documentation creep of billing, and creating a public option for Citizens and legal residents that provide no frills low cost healthcare to whomever wants it. Generic medications, no robotic procedures, no private rooms, minimal documentation and no suing of the providers that work for such facilities. Then allow the market compete for the cost of the frills and add-ons for those who choose to pay for them. This would easily eliminate 30-50% of the cost right there.

There is absolutely no reason why a CT should cost $800 while it costs $250 in other parts of the world. There is also no reason why a penny's worth of Tylenol should be billed at $80 each.

We are to blame no one but ourselves.
A time to EVALUATE your jitters: | https://www.bogleheads.org/forum/viewtopic.php?f=10&t=79939&start=400#p5275418
Spirit Rider
Posts: 13922
Joined: Fri Mar 02, 2007 2:39 pm

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by Spirit Rider »

vested1 wrote: Sun Nov 01, 2020 8:23 am Since we can only comment on settled law, it should be acceptable to mention that these increases, in some part, had been expected with the SCOTUS decision to repeal the individual mandate.
SCOTUS didn't repeal the mandate. In fact the mandate is still in effect, the administration just reduced the penalty to $0.
A simple search on Google will reveal many articles from independent sources that point out the inevitability of rising ACA premiums resulting from that change.
It is not apparent that the reduction of the penalty has had any affect on premiums. There were far higher average premium increases before that was done.

Young healthy individuals were never enrolling in the numbers projected with or without the mandate. Maybe, they didn't as has already been pointed out feel like subsidizing old farts like me.

...
we are expected to shut up and pay up, regardless of the fact that health care costs far outpace the rate of inflation.
And that is the crux of the matter. The ACA was/is a Bandaid. Totally ignoring and not addressing the 800lb. gorilla, health care costs.

Until that happens health care insurance costs are going to continue to rise. Having the government pay more of the costs, will just shift the costs to increased taxes/deficits
smitcat
Posts: 6999
Joined: Mon Nov 07, 2016 10:51 am

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by smitcat »

EnjoyIt wrote: Sun Nov 01, 2020 8:45 am
MathIsMyWayr wrote: Sat Oct 31, 2020 2:35 pm
Ron Ronnerson wrote: Fri Oct 30, 2020 12:22 pm I am a public school teacher whose employer contributes nothing toward health insurance (employee must pay 100% of the cost of the premiums) so our family would be much worse off without the ACA. I sympathize with your situation as everyone's circumstances are different. Our MAGI has been in the $60k-$65k range over the past couple of years and our monthly premiums for a family of three (mid-40s couple with one child) have been:

2019 - $1430 for a gold plan ($1200 federal premium credit)
2020 - $1335 for a silver plan ($1290 federal premium credit and $40 state subsidy from California)
2021 - $1430 for a silver plan ($1260 federal premium credit and $50 state subsidy from California)

The difference in cost between a gold and silver plan made silver uncompetitive in 2019.

In 2020, we are paying a bit under $4/month to cover three people. I don't know what we would do without the ACA but, again, totally sympathize with those for whom it has not worked out well.

I wouldn't hold my breath waiting for laws to be revamped. Instead, we must figure out what the system is currently and do our best to navigate through it. In our case, that means putting $50k into retirement accounts each year to lower our MAGI enough to qualify for the tax credits.
It is an irony that many complain about the high cost of health insurance while they gladly pay for an automobile insurance. Healthcare is expensive in this country, period. Somebody has to pay for it except themselves. What can you buy for $4 these days?
Sorry, a Happy Meal at McDonald's for mighty $4! :wink:

Christine Benz of Morningstar interview with Jim Dahle, MD, of White Coat Investor.
https://www.morningstar.com/podcasts/the-long-view/72
Dahle: I think a couple of things. The first thing is people need to realize that healthcare is expensive. It's interesting if you look at people's budgets, sometimes they budget less money for healthcare than they do for their cell phone, and they need to realize that this is a major budget item. This is like your rent. This is like your food. It's not a small-budget item. And I think people have been protected from that for too long by the fact that their employers are paying 50% or 80% or 100% of their health insurance premiums and they haven't realized that it's never going to be cheap. There's highly trained people doing very high-liability work 24/7, 365, using very expensive technologies. Healthcare is never going to be cheap. And so, I think that mindset change needs to take place, that we need to realize that a big part of our national dollar and our individual budgets is going to go toward healthcare.
This is such a mistake. Healthcare is expensive because we the people have allowed it to get so expensive. There is a reason why Americans pay more for less. We elect politicians that just push the cost to different subsets of the population without ever addressing the cost itself. The winners are the insurance companies and pharma. The loosers are the middle class. We can make healthcare less expensive by allowing Americans to buy drugs overseas, by eliminating the overhead and documentation creep of billing, and creating a public option for Citizens and legal residents that provide no frills low cost healthcare to whomever wants it. Generic medications, no robotic procedures, no private rooms, minimal documentation and no suing of the providers that work for such facilities. Then allow the market compete for the cost of the frills and add-ons for those who choose to pay for them. This would easily eliminate 30-50% of the cost right there.

There is absolutely no reason why a CT should cost $800 while it costs $250 in other parts of the world. There is also no reason why a penny's worth of Tylenol should be billed at $80 each.

We are to blame no one but ourselves.
I agree in principle - are there any specific actions/activities that any one individual can do to reasonably help correct this?
smitcat
Posts: 6999
Joined: Mon Nov 07, 2016 10:51 am

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by smitcat »

Spirit Rider wrote: Sun Nov 01, 2020 8:54 am
vested1 wrote: Sun Nov 01, 2020 8:23 am Since we can only comment on settled law, it should be acceptable to mention that these increases, in some part, had been expected with the SCOTUS decision to repeal the individual mandate.
SCOTUS didn't repeal the mandate. In fact the mandate is still in effect, the administration just reduced the penalty to $0.
A simple search on Google will reveal many articles from independent sources that point out the inevitability of rising ACA premiums resulting from that change.
It is not apparent that the reduction of the penalty has had any affect on premiums. There were far higher average premium increases before that was done.

Young healthy individuals were never enrolling in the numbers projected with or without the mandate. Maybe, they didn't as has already been pointed out feel like subsidizing old farts like me.

...
we are expected to shut up and pay up, regardless of the fact that health care costs far outpace the rate of inflation.
And that is the crux of the matter. The ACA was/is a Bandaid. Totally ignoring and not addressing the 800lb. gorilla, health care costs.

Until that happens health care insurance costs are going to continue to rise. Having the government pay more of the costs, will just shift the costs to increased taxes/deficits
"Totally ignoring and not addressing the 800lb. gorilla, health care costs."
Currently I am not aware of any participatory means for an individual to lower health care costs .... continuing the comparison to vehicle insurance we have a number of posts on how to lower our car insurance which includes things like these:
- lessen the number of vehicles we have
- take a safe driver course
- have a better drving record
- select a vehicle with lower rates
- select the insurance that meets your specific needs
All of these and others allow folks to participate and help control/lower their expenses.
I am not aware of any current individual motivators to lesses health insurance based on any of these possible choices:
- non smoker, any discounts for better health
- ability to select type of coverage
- costs go down when you have more children
- ability to shop and get comparison service and costs
All of these are barriers for any individual to be motivated to particpate in improving the cost/benifit relationship of health care.
EnjoyIt
Posts: 5366
Joined: Sun Dec 29, 2013 8:06 pm

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by EnjoyIt »

smitcat wrote: Sun Nov 01, 2020 8:54 am
EnjoyIt wrote: Sun Nov 01, 2020 8:45 am
MathIsMyWayr wrote: Sat Oct 31, 2020 2:35 pm
Ron Ronnerson wrote: Fri Oct 30, 2020 12:22 pm I am a public school teacher whose employer contributes nothing toward health insurance (employee must pay 100% of the cost of the premiums) so our family would be much worse off without the ACA. I sympathize with your situation as everyone's circumstances are different. Our MAGI has been in the $60k-$65k range over the past couple of years and our monthly premiums for a family of three (mid-40s couple with one child) have been:

2019 - $1430 for a gold plan ($1200 federal premium credit)
2020 - $1335 for a silver plan ($1290 federal premium credit and $40 state subsidy from California)
2021 - $1430 for a silver plan ($1260 federal premium credit and $50 state subsidy from California)

The difference in cost between a gold and silver plan made silver uncompetitive in 2019.

In 2020, we are paying a bit under $4/month to cover three people. I don't know what we would do without the ACA but, again, totally sympathize with those for whom it has not worked out well.

I wouldn't hold my breath waiting for laws to be revamped. Instead, we must figure out what the system is currently and do our best to navigate through it. In our case, that means putting $50k into retirement accounts each year to lower our MAGI enough to qualify for the tax credits.
It is an irony that many complain about the high cost of health insurance while they gladly pay for an automobile insurance. Healthcare is expensive in this country, period. Somebody has to pay for it except themselves. What can you buy for $4 these days?
Sorry, a Happy Meal at McDonald's for mighty $4! :wink:

Christine Benz of Morningstar interview with Jim Dahle, MD, of White Coat Investor.
https://www.morningstar.com/podcasts/the-long-view/72
Dahle: I think a couple of things. The first thing is people need to realize that healthcare is expensive. It's interesting if you look at people's budgets, sometimes they budget less money for healthcare than they do for their cell phone, and they need to realize that this is a major budget item. This is like your rent. This is like your food. It's not a small-budget item. And I think people have been protected from that for too long by the fact that their employers are paying 50% or 80% or 100% of their health insurance premiums and they haven't realized that it's never going to be cheap. There's highly trained people doing very high-liability work 24/7, 365, using very expensive technologies. Healthcare is never going to be cheap. And so, I think that mindset change needs to take place, that we need to realize that a big part of our national dollar and our individual budgets is going to go toward healthcare.
This is such a mistake. Healthcare is expensive because we the people have allowed it to get so expensive. There is a reason why Americans pay more for less. We elect politicians that just push the cost to different subsets of the population without ever addressing the cost itself. The winners are the insurance companies and pharma. The loosers are the middle class. We can make healthcare less expensive by allowing Americans to buy drugs overseas, by eliminating the overhead and documentation creep of billing, and creating a public option for Citizens and legal residents that provide no frills low cost healthcare to whomever wants it. Generic medications, no robotic procedures, no private rooms, minimal documentation and no suing of the providers that work for such facilities. Then allow the market compete for the cost of the frills and add-ons for those who choose to pay for them. This would easily eliminate 30-50% of the cost right there.

There is absolutely no reason why a CT should cost $800 while it costs $250 in other parts of the world. There is also no reason why a penny's worth of Tylenol should be billed at $80 each.

We are to blame no one but ourselves.
I agree in principle - are there any specific actions/activities that any one individual can do to reasonably help correct this?
Write to your representatives in the house and senate and threaten to vote for only for candidates who will push for change.
A time to EVALUATE your jitters: | https://www.bogleheads.org/forum/viewtopic.php?f=10&t=79939&start=400#p5275418
Seasonal
Posts: 2269
Joined: Sun May 21, 2017 1:49 pm

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by Seasonal »

smitcat wrote: Sun Nov 01, 2020 8:54 am
EnjoyIt wrote: Sun Nov 01, 2020 8:45 am
MathIsMyWayr wrote: Sat Oct 31, 2020 2:35 pm
Ron Ronnerson wrote: Fri Oct 30, 2020 12:22 pm I am a public school teacher whose employer contributes nothing toward health insurance (employee must pay 100% of the cost of the premiums) so our family would be much worse off without the ACA. I sympathize with your situation as everyone's circumstances are different. Our MAGI has been in the $60k-$65k range over the past couple of years and our monthly premiums for a family of three (mid-40s couple with one child) have been:

2019 - $1430 for a gold plan ($1200 federal premium credit)
2020 - $1335 for a silver plan ($1290 federal premium credit and $40 state subsidy from California)
2021 - $1430 for a silver plan ($1260 federal premium credit and $50 state subsidy from California)

The difference in cost between a gold and silver plan made silver uncompetitive in 2019.

In 2020, we are paying a bit under $4/month to cover three people. I don't know what we would do without the ACA but, again, totally sympathize with those for whom it has not worked out well.

I wouldn't hold my breath waiting for laws to be revamped. Instead, we must figure out what the system is currently and do our best to navigate through it. In our case, that means putting $50k into retirement accounts each year to lower our MAGI enough to qualify for the tax credits.
It is an irony that many complain about the high cost of health insurance while they gladly pay for an automobile insurance. Healthcare is expensive in this country, period. Somebody has to pay for it except themselves. What can you buy for $4 these days?
Sorry, a Happy Meal at McDonald's for mighty $4! :wink:

Christine Benz of Morningstar interview with Jim Dahle, MD, of White Coat Investor.
https://www.morningstar.com/podcasts/the-long-view/72
Dahle: I think a couple of things. The first thing is people need to realize that healthcare is expensive. It's interesting if you look at people's budgets, sometimes they budget less money for healthcare than they do for their cell phone, and they need to realize that this is a major budget item. This is like your rent. This is like your food. It's not a small-budget item. And I think people have been protected from that for too long by the fact that their employers are paying 50% or 80% or 100% of their health insurance premiums and they haven't realized that it's never going to be cheap. There's highly trained people doing very high-liability work 24/7, 365, using very expensive technologies. Healthcare is never going to be cheap. And so, I think that mindset change needs to take place, that we need to realize that a big part of our national dollar and our individual budgets is going to go toward healthcare.
This is such a mistake. Healthcare is expensive because we the people have allowed it to get so expensive. There is a reason why Americans pay more for less. We elect politicians that just push the cost to different subsets of the population without ever addressing the cost itself. The winners are the insurance companies and pharma. The loosers are the middle class. We can make healthcare less expensive by allowing Americans to buy drugs overseas, by eliminating the overhead and documentation creep of billing, and creating a public option for Citizens and legal residents that provide no frills low cost healthcare to whomever wants it. Generic medications, no robotic procedures, no private rooms, minimal documentation and no suing of the providers that work for such facilities. Then allow the market compete for the cost of the frills and add-ons for those who choose to pay for them. This would easily eliminate 30-50% of the cost right there.

There is absolutely no reason why a CT should cost $800 while it costs $250 in other parts of the world. There is also no reason why a penny's worth of Tylenol should be billed at $80 each.

We are to blame no one but ourselves.
I agree in principle - are there any specific actions/activities that any one individual can do to reasonably help correct this?
Any answer to that question is likely to deviate into the realm of politics. Most of the rest of the developed world controls costs by explicit or implicit price controls. Supply and demand are also a factor. Doctor licensing (including immigration restrictions) and drug patents are government granted monopolies and monopolies tend to increase pricing. Antitrust enforcement might introduce more competition among hospitals, large provider practices, etc.
michaeljc70
Posts: 7389
Joined: Thu Oct 15, 2015 3:53 pm

Re: obamacare / ACA Individual Plan Premiums for 2021

Post by michaeljc70 »

TravelGeek wrote: Sat Oct 31, 2020 1:42 pm
michaeljc70 wrote: Sat Oct 31, 2020 11:59 am I haven't received my notice yet for 2021 prices so I don't know how that will go in my case. I also don't even know if it will even be comparable because the plans often change at least slightly. The networks on all but the most expensive plans here are abysmal.
Does healthcare.gov or your state exchange not show you the 2021 prices yet?
I did a comparison today. Our premium is going up 4%. However, there are many other changes. The deductible is going up from $7100 to $8100 (that is each person). The primary care copay, specialist copay and generic drug copay are going up from $30 to $40, $75 to $90 and $20 to $30 respectively. The out of pocket max went up also. I haven't compared every minute detail, but I suspect there are other minor changes. So, I wouldn't even call this the same plan even though they are.

As a side note, most of the plans here don't offer any coverage (except emergency) if you are traveling. I was hoping to spend a month or two somewhere warm (in the US) this winter but I don't think I want to spend $4k more a year to have that covered.
Last edited by michaeljc70 on Sun Nov 01, 2020 10:32 am, edited 1 time in total.
Locked