Obamacare Update

A couple of very interesting things came out on the 29th about the 2018 Health Insurance Policy Requirements...

First, looks like rates are going to be increasing and probably a lot especially for kids aged 15-20) - Child Age Rating: We propose updates to the child age rating structure to better reflect the health risk of children and to provide a more gradual transition when individuals move from age 20 to 21. Specifically, we propose one age band for individuals age 0 through 14, and then single-year age bands for individuals age 15 through 20, effective for plan years or policy years beginning on or after January 1, 2018. We also propose child rating factors that, overall, are higher than the current child factor and more accurately reflect health care costs for children.

Second, the deductibles and out of pocket limits are going up.... shocking!  Annual Limitation on Cost Sharing: The maximum annual limitation on cost sharing is the product of the dollar limit for calendar year 2014 ($6,350 for self-only coverage) and the premium adjustment percentage for 2018, rounded down to the next lower $50. We are proposing a maximum annual limitation on cost sharing for 2018 of $7,350 for individual coverage and $14,700 for family coverage. 

Third, the fee that the Marketplace charges customers, yes, insurance companies have to pay a percentage of their premiums to the Marketplace for each client that they have, is staying the same.  For people in TN and other states that dont have a State Marketplace, it is 3.5%.  Here is the kicker, they are asking how much funding should be used to "ensure robust enrollment in the Marketplace."  Why do they have to do that when they have no competition and it is compulsory?  FFM User Fee for 2018: We propose to charge a Federally-facilitated Marketplaces (FFM) user fee rate of 3.5% of premium for the 2018 benefit year. This user fee rate is the same as the rate for each year from 2014 through 2017 benefit years. We propose to charge issuers operating in a State-based Marketplace on the Federal platform (SBM-FP) a user fee rate of 3% of premium for the 2018 benefit year. We also seek comment on how much user fee funding to devote to outreach and education to help ensure robust enrollment in the Marketplace.

#Obamacare #HealthInsurance #ACA