As Americans prepare for open enrollment to begin in mid-November, reports have begun to fly about the sticker shock of this year’s Obamacare plans. While costs are an important decision-making factor when it comes time to purchase coverage,1 it’s important to remember that the cost of health coverage is more than just the premiums. Claims that the Exchange premiums will sky-rocket are largely over-exaggerated—in fact, six states and the District of Columbia have approved rates that show just a 2.5% premium increase.2; So where is the sticker shock coming from? Americans may have to pay for higher deductibles, co-pays, and co-insurance. Alarmingly, many Americans are unaware of what these terms actually mean.3
Businessweek posits while premiums are easy to compare and understand, the confusion over the above terms means consumers don’t understand how their plan pays and what costs they’re responsible for at the doctor’s office and pharmacy.4 Some states have a wide range of premium options, with Colorado’s approved premiums ranging anywhere from a decrease of 22 percent over last year’s plan to an increase of 35 percent.
The moral of the story is that it behooves consumers to learn more about health insurance for 2015. To learn the lingo of insurance, or to get started shopping for coverage, contact a licensed insurance advisor at 888-839-7679.
1 Norton, Mira, Bianca DiJulio, and Mollyann Brodie. "Data Note: Gearing Up For Round 2 of Open Enrollment: Some Lessons From Round 1." Data Note: Gearing Up For Round 2 of Open Enrollment: Some Lessons From Round 1. Kaiser Family Foundation, 04 Nov. 2014. Web. 11 Nov. 2014.
2 Mangan, Dan. "No Obamacare Sticker Shock in 2015? Here's Why." CNBC. CNBC LLC, 03 Oct. 2014. Web. 11 Nov. 2014.
3 Rea, Shilo. "Press Release: Consumers Don't Understand Health Insurance, Carnegie Mellon Research Shows." Carnegie Mellon News - Carnegie Mellon University, 01 Aug. 2013. Web. 11 Nov. 2014.
4 Tozzi, John. "Obamacare Plans' Unexpected Sticker Shock." Bloomberg Business Week. Bloomberg, 08 May 2014. Web. 11 Nov. 2014.