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President Obama promised us the Affordable Care Act would yield $2,500 per family savings and better benefits. The reality is we are going to pay thousands of dollars more for our care and thousands of dollars more for our premiums. This is because of obscure provisions called the Applicable Percentage Table and the Annual Limitation on Cost Sharing. You’ve almost certainly never heard of these, yet both can deprive you of care and take a lot of money from your wallet.
Your Healthcare Benefits Will Get Even Worse
The ACA limits cost sharing to protect individuals from excessive out-of-pocket expenses. One of the concerns of ACA supporters revolved around high out-of-pocket limits for consumers. This amount, set at $6,350 per person in 2014, was one of the largest objections individuals had when deciding what plan to purchase. Even with a subsidized premium, having to potentially come up with such a large percentage of their income to cover claims made coverage and care unaffordable.
The Annual Limitation on Cost Sharing requires that these high out-of-pocket limits be updated annually. The formula for determining the new Maximum Out-of Pocket (MOOP) is based on the increase in average premiums per person for health insurance coverage. That means that if premiums increase annually, the MOOP will go up. For 2015, the premium adjustment percentage is 4.21 percent, which increases how much you spend on medical care to $6,600. That’s $250 more out of your pocket.
According to the September 2014 Health and Human Services Rate Review Annual Report, small-group health insurance premiums have increased substantially since 2008. As long as it continues, we will see a higher MOOP every year. Worse yet, the growth rate of insurance premiums is still rising faster than average income and inflation. The result is clear: consumers will have worse insurance every year. The chart below shows what will happen to the MOOP at a (lower than average) 4 percent premium growth rate.
Click link to see tables and more:
These Little-Known Obamacare Rules Will Hike Costs & Cut Benefits
Your Healthcare Benefits Will Get Even Worse
The ACA limits cost sharing to protect individuals from excessive out-of-pocket expenses. One of the concerns of ACA supporters revolved around high out-of-pocket limits for consumers. This amount, set at $6,350 per person in 2014, was one of the largest objections individuals had when deciding what plan to purchase. Even with a subsidized premium, having to potentially come up with such a large percentage of their income to cover claims made coverage and care unaffordable.
The Annual Limitation on Cost Sharing requires that these high out-of-pocket limits be updated annually. The formula for determining the new Maximum Out-of Pocket (MOOP) is based on the increase in average premiums per person for health insurance coverage. That means that if premiums increase annually, the MOOP will go up. For 2015, the premium adjustment percentage is 4.21 percent, which increases how much you spend on medical care to $6,600. That’s $250 more out of your pocket.
According to the September 2014 Health and Human Services Rate Review Annual Report, small-group health insurance premiums have increased substantially since 2008. As long as it continues, we will see a higher MOOP every year. Worse yet, the growth rate of insurance premiums is still rising faster than average income and inflation. The result is clear: consumers will have worse insurance every year. The chart below shows what will happen to the MOOP at a (lower than average) 4 percent premium growth rate.
Click link to see tables and more:
These Little-Known Obamacare Rules Will Hike Costs & Cut Benefits
