It’s hard to ignore that health insurance is going to change in the coming year. It has been a huge topic in the news cycle, as rates are projected to rise, almost across the board. The biggest change in health insurance is going to be a hike in premiums—not just for people who are on government-assisted programs, but across the entire spectrum. Experts expect that health insurance premiums are going to rise by at least five percent in 2017 for most employees. And while some people say that this is typical, that this is on par with hikes over the last three years, that isn’t necessarily a good thing. Prices for health insurance are increasing at a faster rate than inflation suggests they should.
What else is going to change will depend on what type of health insurance you have and your specific plan. For example, many high deductible plans will be getting a bonus tax advantage, which could make them a more cost-effective choice during the coming year. More people will likely also be looking into health savings accounts, which can be used to pay for certain healthcare costs. All contributions to these accounts are tax-deductible, the account can accrue money without you having to pay taxes on those returns, and taking money out of those accounts is also tax-free (as long as you use the money for medical expenses).
If you have a plan that includes a health savings account that you can access, the best way to make the most of it is to contribute money to that account, but then to not use the money. If you have few healthcare costs over the course of the year, you are going to see the balance in that account accrue quickly. You’ll see more returns and because you do not have to pay taxes on that money, it is a great place to store your money. If you are continuously putting money in and taking it out, you are not going to see the benefits of the account. Most young, healthy people can predict what healthcare costs they are going to have over the course of a year (copays for checkups and prescriptions), and can budget for those amounts.
There are other changes coming to health insurance in the next year, too. If you are on a marketplace (Obamacare) plan, you are going to see three big changes to your health insurance. First of all, you’ll be able to see information about the insurer’s network before you buy. This puts you at a much lower change of accidentally buying a plan that doesn’t include your preferred doctor or hospital. This might not have been a problem for individuals who live in sparsely populated areas where this is one hospital and only a few doctor’s offices, but this is great news for those who have been surprised by changes to their network in the past. Now, you have to be given at least thirty days’ notice before a provider is removed from your network, and patients who are in active treatment have up to ninety days of coverage even after a provider is removed.
Another big change to Obamacare includes efforts to reduce what people are calling “surprise bills.” Essentially, you would go to a doctor that you thought was inside of your network, but later, when your bill came, discovered they were not in your network. Patients have to be given proper notice if a provider is being removed from a network. There is also a new rule that requires any money paid for ancillary care (like radiology or anesthesiology) to count towards the patient’s maximum out of pocket expenses, so there are less likely to be surprise bills for those services.
The third big change will be an attempt to standardize the out-of-pocket expenses for patients. In the past, it was very difficult to determine which plan was better for a consumer, as the out-of-pocket expenses were not standardized and therefore, almost impossible to compare. Insurance companies have started to offer plans that can more easily be compared by the average consumer. Instead of just guessing at which plan has the coverage they need at an affordable rate, they’ll be able to see.
These changes are largely in response to complaints made by consumers over the last year and a half, who have, in general, found that they were not able to access the information or, even worse, understand the information presented to them in relation to their health insurance plans.
Some consumers are going to see big jumps in their premiums. For example, Phoenix, Arizona consumers are seeing 145% increases on their unsubsidized insurance—the highest increase in expenses in the country. Those who are not on an Affordable Care Act plan are likely to see increases, though they are unlikely to be as high as what residents of Phoenix residents are seeing.
A few insurance companies are withdrawing from the ACA marketplaces, which may leave some who had subsidized plans without them. Two companies specifically—UnitedHealth and Aetna—cited losses after joining the marketplace and have withdrawn to stem the bleeding.
