Report highlights the costs of insurance coverage throughout the US under the Affordable Care Act
The U.S. Department of Health and Human Services has released a report that serves as the federal government’s first concerted effort to evaluate the affordability and availability of insurance coverage through the Affordable Care Act. Some 36 states were evaluated for the report and the federal agency found that New Jersey was home to some of the most expensive coverage in the country. New Jersey residents are paying significantly more for their health insurance coverage than those in other states.
Report shows that New Jersey insurance premiums are higher than those found in other states
According to the report, those that have qualified for tax credits from the federal government due to the provisions of the Affordable Care Act are, on average, paying less than $100 a month in premiums. Those that did not qualify for these tax credits are paying an average of $300 a month for coverage. In New Jersey, however, the average health insurance premium is $465 a month and $150 for those that qualify for tax credits.
Expensive medical care may be the reason for high premiums
While many are quick to blame the insurance industry for costly coverage, this may not actually be the problem. Ward Sanders, president of the New Jersey Association of Health Plans, suggests that costly medical care is having an impact on the cost of health insurance coverage. Hospitals throughout New Jersey are charging inordinately high amounts for their services, which is placing insurance companies under heavy financial strain. Notably, New Jersey is home to one of the most expensive hospitals in the country; Bayonne Hospital.
Insurance premiums may never be reduced if medical care is not made less expensive
Expensive medical care means financial losses for insurance companies. In order to offset these losses, insurers must raise rates on the coverage they provide. This relationship between hospitals and insurance companies is both complicated and problematic, as it has a major impact on the financial security of consumers. The problem of expensive insurance coverage cannot be resolved without taking action against the growing costs of medical care.