Analysis predicts that health insurance rates will grow by an average of 255%
Those receiving federal aid for their health insurance coverage in the U.S. could see their insurance premiums rise by a significant margin, pending the results of a Supreme Court case. According to analysis from Avalere Health, an advisory group, premiums for those with subsidized coverage could spike by an average of 255%. Information from the Department of Health and Human Services shows that the vast majority of those receiving health insurance coverage through an exchange currently receive subsidies for this coverage from the federal government.
Supreme Court case could put an end to subsidies from the federal government
The Supreme Court is set to hear a case regarding the legality of subsidies for health insurance coverage. The Supreme Court is expected to issue a ruling on the case by the summer of this year. The case involves whether or not consumers can receive financial aid for enrolling in a health insurance exchange operated by the federal government. The Affordable Care Act, which created the exchanges, does not specifically note that financial aid is available for those enrolling in federal exchanges.
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Rates in Mississippi could jump by as much as 774%
According to Avalere Health, insurance rates for those in Arizona will grow by the lowest margin, with the average insurance premium spiking by 122%. In Mississippi, however, health insurance rates could jump by an astonishing 774%. The Obama Administration claims that the case being heard by the Supreme Court is absurd. Congress is currently working to determine whether or not action should be taken on this particular issue before the case progresses further through the Supreme Court.
Lack of subsidies could lead to people losing their health insurance coverage
If subsidies are taken away, health insurance coverage may become unaffordable for many consumers. These subsidies were meant to offset the cost of insurance coverage, making it possible for the uninsured to acquire the coverage that they need. Many people have avoided purchasing insurance coverage because of its high costs, a problem that was somewhat alleviated with the introduction of insurance exchanges and the availability of federal subsidies.