Higher healthcare costs for individual health consumers (under age 65) have been looming for 2023, as the American Rescue Plan Act was set to expire on December 31, 2022.
What this meant for consumers is higher healthcare premiums, as the extra tax credits would have been reduced this upcoming enrollment season. Every year there is an increase in deductibles, max out of pockets and monthly premiums. Tax credits help to make those premiums more affordable; these credits change on a yearly basis and are released on November 1st each year. We have seen huge increases in tax credits as we saw in 2020, and huge decreases as we saw in 2018, which affects the monthly premium you pay monthly if you qualify.
So, what does the Inflation Reduction Act passing mean for you?
The prescription drug pricing reforms aim to help cut costs for seniors enrolled in Medicare. It caps their out-of-pocket costs at $2,000 annually (currently $4,430 for 2022), while allowing the U.S. government to negotiate the price of a small set of medicines beginning in 2026.
The bill includes $64 billion to reduce health insurance premium increases for about 13 million Americans who buy coverage through state and federal Marketplaces. This should help offset those pesky price increases coming for 2023.
Now is a great time to start gathering your data for your annual review with your insurance agent. Here are few things to prepare before your meeting:
- Estimate what your annual household income will be for 2023.
- Make a list of all your prescriptions, dosages and times taken per day.
- Have any planned surgeries or procedures?
- Has your health changed?
- Are you planning on adding any children to the household?
- What hospital systems do you use?
Have questions or would like us to review your health insurance benefits and pricing, feel free to contact Dawn Freeland @ 269-910-2758 or dawn@freelandis.com.
