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Americans Brace Themselves As Insurance Carriers Request Alarming Increases for 2016

They have bills to pay

Amid the King vs. Burwell supreme court case, which stands to eliminate the Affordable Care Act’s tax credit, alarming reports are being released on projected health insurance premium increases in 2016. The past 5 years have brought consistently hefty increases in health insurance premiums since the Affordable Care Act (ACA) was written into law.  Insurance carriers are beginning to release their projected increases for 2016 and for many Americans another year of sticker-shock is on the horizon.  Insurance premium rates have increased on average 12-15% across the country each year, with some carriers particularly in California and some East Coast states taking shockingly higher increases. In 2016 increases for individual policies (outside of the Marketplace/”Obamacare” plans) are projected to take a 31% increase this year on average.  In some locations the premium hikes will be as astronomical as 60% increases with some carriers. Here in Texas, Scott & White and Humana are asking for increases over 30% with the majority of other carriers requesting increases not too much lower.  The majority of the carriers in the state of Texas are requesting increases just over 20%. Many Americans have grown tremendously frustrated with the ceaseless stream of increases and the insurance carriers themselves bear much of the blame as a result.  However, insurance carriers have been left few options but to take dramatic increases in order to comply with the demands of the ACA. Far and away the most costly demand is the long list of services, many  considerably expensive, that insurers are not required to cover.  Another consideration is the fact that the Affordable Care Act(ACA) brought with it many new, costly taxes on insurance carriers.  Also, as a result of premium age limits younger Americans, who often make less than their older counterparts, are left to bear disproportionately higher premiums though their claims cost is dramatically lower. The Affordable Care Act(ACA) has been a devastatingly expensive burden on the finances of policy holders across America.  As the supreme court deliberates on whether or not to declare the tax credit unconstitutional and the GOP mounts its plan to dismantle the ACA entirely many Americans attempt to steady themselves amid the continued and seemingly endless flux in the insurance industry.


E. Steele

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