SEATTLE — As open enrollment begins, health insurance rates on Washington’s Health Benefit Exchange are set to rise by an average of 21% next year.
Nearly 300,000 Washingtonians purchased individual health plans through the exchange last year. State leaders warn that these price hikes could lead 80,000 people to opt out of coverage this year.
“So I paid $463, now and now it’s going up to $525 for next year,” said Jim Doyle, who gets his health insurance through the Washington Health Benefit Exchange.
Doyle said the additional cost will lead him to reevaluate his budget and likely lead him to save less for retirement.
One of the reasons for the higher costs is the expiration of federal tax credits that have been keeping rates down. The tax credits are set to expire at the end of this year, unless Congress acts to extend them.
Aaron VanTuyl, with the state’s Office of the Insurance Commissioner, noted that these tax credits have saved individuals an average of about $1,300 a year, with seniors saving even more, around $1,900 annually.
If people opt out of coverage altogether, it could make prices rise for everyone else.
“They would leave the insurance pool, which would drive costs up for everybody else, and then in the event those people did need medical care, theoretically, they would turn to, you know, an emergency room, which also winds up just pushing costs up down the road for everyone else.”
In addition to the expiration of tax credits, VanTuyl said rising healthcare and prescription drug costs, as well as hospital consolidations, have contributed to the increased insurance rates.
If you get your insurance from the benefit exchange, shop around and compare plans. You might be able to find a plan that is more affordable.
There are other ways to cut medical costs too, including by opting for generic medicines, which contain the same active ingredients as brand-name drugs but are often less expensive. Patients should consult their healthcare providers about switching to generics or finding less costly alternatives for their prescriptions.
Make sure you understand and use all of your insurance benefits, too. Routine health screenings, vaccines, and annual wellness visits are often covered without copays or coinsurance, making them a cost-effective way to catch health issues early. Pregnant individuals are encouraged to get prenatal care to ensure the health of both mother and baby.
Choosing in-network healthcare providers can also lead to significant savings, as these providers have agreements with health plans to offer services at lower rates. Additionally, outpatient clinics may offer cheaper alternatives for certain procedures compared to hospitals.
Maintaining a healthy lifestyle by staying at a healthy weight, exercising regularly, and avoiding excessive alcohol or tobacco use can prevent costly health problems. For those with specific health needs, selecting a health plan with appropriate coverage is essential.
Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) allow individuals to set aside pre-tax money for healthcare expenses, providing a way to save hundreds of dollars annually.
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