NEWS: Washington Post: Older Women Bear the Brunt of Higher Insurance Costs Under Obamacare
OBAMA PROMISE: "We’ll lower premiums by up to $2,500 for a typical family per year."
REALITY: "Women age 55 to 64 will pay from $2,185 to $2,738 more… than they did pre-ACA."
One of the president’s now infamous broken health care promises was the assurance that, "We’ll lower premiums by up to $2,500 for a typical family per year." But the House Energy and Commerce Committee warned that this would never be the case. Specifically, a report from May 2013 found, "While the end of gender rating may decrease premiums for younger women, other populations including older women and men will see rates go up even with narrower age rating bands." Now, The Washington Post reports that women actually face cost increases in the range of what the president promised families would save. As Joann Weiner explains in the Post’s "She the People" section, "Women age 55 to 64 will pay from $2,185 to $2,738 more in premiums and out of pocket expenses under the new health insurance environment than they did pre-ACA." This is yet another broken health care promise, as costs for some have already increased by over 40 percent this year, and reports indicate that they will continue to climb next year. How does the future look for older women? Not good as Weiner writes, "it appears that older women should be ready to face a ‘sticker shock’ when they go out to buy their health insurance on a federal exchange."
June 24, 2014
Older Women Bear the Brunt of Higher Insurance Costs Under Obamacare
It’s hard for an ordinary person to figure out whether health insurance will be more expensive under the Affordable Care Act. First of all, figures that look good "on average," often mask extremely wide differences across age groups. Secondly, it’s hard to find pre-ACA policies that are comparable to the policies available post-ACA.
These differences are shown by two recent reports with sharply different implications. The government’s report shows that federal tax credits make health insurance premiums more affordable for everyone. The academics’ report, however, shows that women age 55 to 64 will face a huge spike in cost when they go out to buy individual insurance on the federal exchange. These women bear the brunt of the increased premiums and out of pocket expenses after the Affordable Care Act. …
Total expected premiums and out of pocket expenses rose by 50 percent for women age 55 to 64 — a much larger increase than for any other group — for policies on the federal exchanges relative to prices that individuals who bought individual insurance before health care reform went into effect.
Women age 55 to 64 will pay from $2,185 to $2,738 more in premiums and out of pocket expenses under the new health insurance environment than they did pre-ACA.
Premiums for the second-lowest silver policy are 67 percent higher for a 55 to 64-year-old woman than they were pre-ACA.
In fact, the redistribution to older women is so great that almost everyone else is "below average" in the change in their total health care expenses for these two plans. For example, men age 45 to 54 will see their premiums fall by about $1,000 a year relative to the average if they buy the bronze plan, while total costs for women in this age group are $300 below average. For older women, they’re $1,500 above average. …
Despite relatively small average increases in premiums and out of pocket expenses post-ACA, it appears that older women should be ready to face a "sticker shock" when they go out to buy their health insurance on a federal exchange.
Read the article online HERE.