(WTAQ-WLUK) — Open enrollment for health insurance coverage is right around the corner.
However, experts are predicting your premiums will increase substantially in the new year, in part because Congress did not extend enhanced Affordable Care Act subsidies.
That means some families could have a tough decision to make.
For those enrolling in the nation’s health care system, increases could range between 20% and 30% for most insurers.
That’s according to a UW-Madison professor who studies insurance.
“In general, health insurance premiums are very closely linked to health care costs. And health care costs have grown quite a bit faster than inflation over the last few years,” UW-Madison Professor in Risk Management & Insurance Dan Sacks said.
Sacks said another contributing factor is large hospitals have more power to negotiate higher prices, which insurers pass on to customers.
The expiration of enhanced federal subsidies through the Affordable Care Act, is also a factor in costs going up.
Sacks said that change meant 20,000 fewer Wisconsinites had coverage through the national health care program this year.
You can also expect a jump if you have insurance through your employer.
According to analysis by Marsh, the total health benefit cost per employee is expected to rise 8% next year.
That’s the highest increase since 2003.
A high U.S. inflation rate and the increased use of GLP-1 drugs are two factors pushing costs up.
Insurance agencies like Northern Advantage Insurance in Green Bay are dealing with a lot of worried clients. One agent strongly recommends keeping your coverage if you can.
Agency Principal Aaron Wallender said it’s especially challenging for people under 65 looking to retire.
They don’t quite qualify for Medicare and paying for insurance out-of-pocket may be too expensive.
“It is definitely going to drive people to look for alternative options, figure out if they have to continue to work maybe to maintain an employer group plan. There’s gonna be a lot of difficult conversations to come,” Wallender said.
Wallender works with a lot of people that are close to the threshold of receiving subsidies.
The potential rate hikes are prompting a lot of questions from Wallender’s clients.
“Can I afford this, how much more am I gonna pay next year? Are all of my doctors still covered? What’s changing with my plan? How much more am I gonna pay for copayments or deductibles or prescription drugs?” Wallender said.
As people brace for more expensive health insurance, Sacks said it’s important to compare options and to check if you can qualify for a subsidy.
“People should shop around. If they anticipate a large premium increase, there may be opportunities for savings with other plans,” Sacks said.
Open enrollment in Wisconsin begins Nov. 1.
Follow this link to compare health insurance plans and see if you qualify for financial assistance.
Comments