Subsidies to Protect Customers from Obamacare Premiums' 2024 Increase

A Centers for Medicare and Medicaid Services analysis issued on October 25 predicts that in the 32 states listed on healthcare.gov, the average monthly premium for the benchmark silver plan would increase by 4% in 2024.

October 25 is the first day that consumers began comparing Affordable Care Act insurance, as the federal exchange opens for window shopping. Open enrollment begins on November 1 and goes on through January 15.

However, if one wants coverage to start on January 1st, they must enroll by December 15. The increase in Obamacare enrollment since President Joe Biden assumed office in early 2021 has been praised by the Biden administration.

During the most recent open enrollment session, a record 16.4 million individuals signed up for 2023 coverage, a 36% increase from the 4.4 million who did so for 2021 open enrollment.

Enrollment is open to anyone who has lost their Medicaid and resides in states that use the federal exchange until July 2024. Similar special enrollment periods are also being offered by the majority of state-based exchanges. Enrollees with lower incomes may be eligible for subsidies that may drastically lower their out-of-pocket expenses and eliminate their premiums for the next year.

Improved subsidies, which were first implemented under the American Rescue Plan Act in 2021 and renewed by the Inflation Reduction Act last year, are available to enrollees.

Through 2025, the enhanced assistance will lower premiums to no more than 8.5% of a policyholder's income.

The increased subsidies were available to almost 96% of consumers who chose plans for 2023 on the federal exchange during open enrollment. About two-thirds of current policyholders may find policies for less than $10 per month for the upcoming year if they stay within their coverage tier.

On the federal exchange, 4 out of 5 customers will be able to select plans for $10 or less each month. Almost every customer will have the option to select from at least three insurers; on average, they will have less than seven options.

Insurance companies will be required to include treatment centers for substance use disorders, mental health institutions, and rural emergency hospitals in their provider networks for the first time. Additionally, optional questions on gender identity and sexual orientation will be included to the Obamacare application so that health inequities in coverage access may be examined.

Additionally, after completing an application, customers will now receive an estimate of their overall annual expenditures, which will include premiums and out-of-pocket payments for care, to help them compare the potential costs of various plans.

The government is giving 57 navigator groups funding totaling almost $99 million so they may carry out outreach and help customers enroll in plans. November 1 is the start date for open enrollment in states with their Obamacare exchanges, except Idaho, where it started on October 15.