As 2016 passes the halfway point and the end of summer is near, individual health 
insurance companies are in the process of setting rates for 2017 market plans. The Affordable Care Act (ACA) has seen much discussion lately, especially with the announcement that United Healthcare would withdraw from most of the states at the end of this year, citing massive financial losses.
Because most companies choose to stick with the ACA, many market buyers are concerned about spending in 2017. With early reports suggesting that the individual health insurance rates will spike, customers want to know how high rates will go.
individual health insurance rates expected to Spike
Earnings reports from 2015 reported heavy losses among most individual health insurance companies on the market . A major reason for this has been a large proportion of unhealthy people registered healthy. With so many people who have been insured for years, finally able to see a doctor, the individual health insurers see charges much higher than expected.
In order to recover some of their costs and meet closer to breakeven, this means that many individual health insurance companies will raise rates in 2017. Trying to determine "how much" is the question on the minds of many buyers in the market.
How Will individual health insurance rates increase in 2017?
estimates the premium individual health insurance are generally based on the second lowest market plan (money) because it is the most common level selected among registered. According to the Kaiser Family Foundation (KFF), the silver level plans should increase by a weighted average of about 9 percent in 2017. By comparison, the average increase from 2015 to 2016 was about 2 percent.
costs (and, therefore, increases) will vary state to state and it is important to note that only 17 cities are included in the Kaiser estimate. For example, residents of Providence, Rhode Island can expect a decrease of 14 percent, while customers in Nashville, Tennessee may see increases to 27 percent. Of course, that means it will be impossible to know for sure how much the rates will change until the information is due on November 1, 2016.
Shop can give lower premiums
Like home insurance, it is wise to shop around when the opportunity arises. The cost of individual health insurance changes from year to year, so it is possible that the best rates from 2016 are not in the same company in 2017. Because of the extra work (comparing rates instead of just signing a form to register again), most of the ACA customers will not shop during open enrollment.
However, this can save you hundreds throughout a year. If you or your employees feel they need help in this task by healthcare.gov brokers are always available. Once a broker is assigned to a customer, that person is available via a hotline or email to answer any questions.
Conclusion
Although it is difficult to determine exactly how individual health insurance rate increase in 2017, it is generally accepted that the premiums will in fact rise. Amounts vary across the country, so it's important to do your best to prepare, but also to tour during open enrollment to try to get the best possible deal for 2017.
What are you doing to prepare for an increase in premiums of individual health insurance? Let us know in the comments below!
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