Tag: affordable care act
On Election Eve, Worried Voters Face Staggering Hikes In Healthcare Costs

On Election Eve, Worried Voters Face Staggering Hikes In Healthcare Costs

In my final post before the mid-terms, here’s where things stand for Americans on health care costs, which voters rank as either their first or second most pressing economic concern:

  • The cost of employer-sponsored health insurance will leap 8.2 percent in 2027, which will drive workers co-premiums up by a similar amount if not higher. (Worker co-premiums jumped nine percent last year.)
  • The average worker on a company-sponsored plan this year paid $8,460 in premiums and $3,564 in deductibles, co-pays and other out-of-pocket expenses. Combined, that’s 13.7 percent of the median household’s income.

  • The cost of individual and family plans sold on the federal and state exchanges, where open enrollment began this week, rose 15 percent for 2027. That’s the second straight year of double digit increases.
  • The uninsured rate rose to 11 percent this year after millions of people were thrown of Medicaid or lost their Affordable Care Act plans due to rising premiums and lost subsidies. That’s up from eight percent in January 2025 when President Trump took office for the second time.
  • While no one publishes reliable numbers, the price of seniors’ Medigap policies is also soaring. In New York State, for instance, UnitedHealth sought a 12.6 percent increase for its Medicare supplemental plans earlier this year. State regulators approved “only” a 5.6 percent increase, two percentage points higher than the overall inflation rate.
  • Seniors who purchase stand-alone drug plans will see a 50 percent increase in their average premiums in 2027, according to today’s KFF News. Trump’s response? “We have the lowest drug prices anywhere in the world,” he told a campaign rally in Ohio earlier this week.
  • I am traveling this week to San Antonio to attend the American Public Health Association’s annual meeting, where I will be moderating a panel discussion on Monday afternoon. The topic: Where the nation stands in its 100-year quest for universal coverage and where we go from here.

    Merrill Goozner, the former editor of Modern Healthcare, writes about health care and politics at GoozNews.substack.com, where this column first appeared. Please consider subscribing to support his work.

    Reprinted with permission from GoozNews

Before The Fall: What American Healthcare Lost After Trump Took Over

Before The Fall: What American Healthcare Lost After Trump Took Over

When the Census Bureau reported on September 15 that the uninsured population remained steady at its all-time low of eight percent of the adult population in 2025, I immediately thought of this visual metaphor to describe the news:

Wile E. Coyote

The picture is of one Wile E. Coyote, whose imminent fall into the canyon of despair always came at the hands of the Acme Manufacturing Co., which, to continue the metaphor, stands for the malfunctioning products of the Trump regime and an obsequious Congress. The GOP’s One Big Ugly Bill didn’t pass until mid-2025. Its destructive impact on the nation’s health insurance rolls didn’t begin until this year.

In other words, today’s news is the final snapshot of the successes of the Biden administration. During its four years in office, the government beefed up subsidies for low- and moderate-income people buying insurance plans on the exchanges, and expanded Medicaid to include many more women, children and low-wage workers.

“These data do not reflect the impact of recent rising inflation or most of the cuts to food assistance and health coverage enacted in the 2025 Republican reconciliation law,” the Center for Budget and Policy Priorities posted on its website. “That law made the largest cuts to SNAP and Medicaid in our nation’s history and failed to extend the premium tax credit enhancements that made the ACA marketplace more affordable and successful in expanding coverage and lowering costs. These cuts are already taking food assistance and health care away from millions of people who need it, driving up poverty and hardship.”

Nearly three million people dropped ACA plans this year because of soaring premiums and the Trump regime’s failure to extend the additional subsidies passed during the Biden years. Nearly four million people have already been thrown off Medicaid.

The Census Bureau also reported wage gains in 2025 outpaced inflation. But again, this largely reflects the temporary waning of inflation during Biden’s last year in office and preceded the White House pursuing its undeclared war against Iran, which has shut Straits of Hormuz and sent food and fuel prices soaring.

While we should use this last “good” year as a benchmark for what is to come, let’s also remember that leaving 27 million Americans without health insurance — an eight percent rate — is an anomaly in the advanced industrial world. So is the fact that 44 million people or one in eight overall live in poverty.

CBPP points out that income inequality after taxes stood last year at its highest point in nearly two decades. That average wage gains outpaced inflation is of little solace to people in the bottom half of the income distribution when those gains are disproportionately distributed to the rich and well-to-do.

Merrill Goozner, the former editor of Modern Healthcare, writes about health care and politics at GoozNews.substack.com, where this column first appeared. Please consider subscribing to support his work.

Reprinted with permission from GoozNews

Health Insurance Premiums Are Set To Soar Just Before Midterm Elections

Health Insurance Premiums Are Set To Soar Just Before Midterm Elections

Anyone whose employer provides health coverage knows the drill. Each fall, they are offered a menu of potential health care plan choices for the following year.

It usually includes three options. First, there is a preferred provider plan, which pays most of the bills, has few limits on provider choice, and has the highest paycheck deduction. Second comes a mid-priced health maintenance organization plan, where provider networks are limited, prior authorization rules are strict, and co-pays and deductibles are moderate. Finally, there is a high-deductible plan, which has the smallest paycheck deduction, but can leave an individual or family with large, unaffordable bills when anyone covered by the plan requires hospitalization or expensive treatment.

The employer share for any one of those plans (the average family plan cost is nearing $30,000 a year) usually hovers around 75 percent of the total cost. Workers pick up the other 25 percent through a payroll deduction. In the decade after passage of the Affordable Care Act, the annual increase averaged around 6-7 percent or about the same rate as economic growth after inflation was taken into account.

But during the pandemic, health care cost began a rapid ascent to around 8-8.5 percent annually. Now, it has taken another upward lurch.

A new survey of health care actuaries by PwC (formerly known as Price Waterhouse Coopers) found private health insurers medical claims costs are rising at a nine percent clip this year and are expected to rise by a similar rate next year. Last year’s survey pegged this year’s expected cost increase at 8.5 percent.

“Health plans are projecting the highest medical cost trend in nearly two decades,” the consulting group said in its analysis. “Payers and employers face mounting pressure to act.”

This could prove a financial fiasco for people on employer-based plans, which cover about 160 million workers and their families. They will likely face co-premiums, co-pays and deductibles in their 2027 plans that are rising at nearly three times the rate of inflation.

And it could be a lot worse than that. As actuaries inside the insurance companies map out their costs, they will have to take into account the additional price increases levied by hospital systems due to rising utilization, AI-enabled billing tactics, and what’s likely to be a rapid rise in unpaid bills.

The sharp cutbacks in Medicaid contained in the One Big Ugly Bill signed by President Trump last year will hit in full force in 2027. Well over ten million impoverished Americans are expected to lose coverage due to their inability to leap over the bureaucratic hurdles erected to enforce the legislation’s work requirements.

Millions more are dropping coverage and falling into the ranks of the uninsured due to the Republicans’ refusal to extend the expanded subsidies in ACA plans enacted by Democrats during the Biden administration. Both cuts will trigger a huge increase in uncompensated care at the nation’s safety net hospitals that serve low- and moderate-income communities.

Like all hospitals, safety net hospitals must provide emergency treatment for anyone who lands on their doorstep thanks to the 1986 Emergency Medical Treatment and Labor Act, which was signed into law by President Ronald Reagan. Unlike their suburban counterparts, who face far fewer cuts because they serve mostly the privately insured, these safety nets have fewer resources and small or no endowments to fall back on.

The final rates will be determined by medical actuaries inside the insurance firms over the next few months. The rates for 2027 are usually unveiled in mid-October.

How will employees respond if they see their paycheck premiums rising at a near double-digit rate? Many more low-income workers will opt into high-deductibles plans, which will leave many with unpayable medical debt because they can’t afford the out-of-pocket expenses when someone in the family gets sick. More middle-class workers will opt into HMOs with their network limitations and prior authorization restrictions to save on their upfront costs.

The nation’s employees with employer-sponsored coverage will be making those decisions starting on November 1, the traditional date for open enrollment for the ensuing year. That’s two days before the midterm elections.

Merrill Goozner, the former editor of Modern Healthcare, writes about health care and politics at GoozNews.substack.com, where this column first appeared. Please consider subscribing to support his work.

Reprinted with permission from Gooz News


Trump and Hegseth

Iran War's Explosive Costs Could Finance Health Care Coverage For Millions

The Pentagon is asking the White House for an additional $200 billion to fight the president’s ill-conceived war in the Middle East.

While it’s unclear from the initial news reports whether this is a one-year or multi-year appropriation, the size of the request suggests this war is going to drag on a lot longer and involve far more manpower and firepower than President Trump and Secretary of Defense Pete Hegseth have let on. The now three-week-old war of choice has already left 13 soldiers dead and more than 140 wounded. It has already cost over $12 billion, according to reported estimates.

Let’s put that cost and this latest request in perspective. The $12 billion already spent is enough to have extended the Affordable Care Act subsidies for close to six months.

Instead, over two million or nine percent of people in ACA health insurance plans last year dropped them for this year (the first without the expanded subsidies) because they couldn’t afford the huge increase in their premiums, according to a new survey released yesterday by KFF, a health care think tank. That’s nearly a 10 percent increase in the ranks of the uninsured, which alone will bring the uninsured rate close to 10 percent overall.

And many more will drop coverage in the years ahead, given ACA marketplace purchasers’ concerns about their ability to pay the new, higher rates without subsidies.

The $200 billion the Pentagon is requesting is sufficient to extend the ACA subsidies for over five years. Where did I get that estimate? The failure to extend the subsidies helped pay for the $7.7 trillion in tax cuts for the wealthy and large corporations in last year’s One Big Ugly Bill (OBUB). It reduced health care spending by about $350 billion over ten years, an average of $35 billion a year. $200 billion ÷ $35 billion = 5.7 years.

The same math applies to the alleged Medicaid “savings” in the OBUB. Imposing work requirements (a lexicographic subterfuge for erecting bureaucratic barriers that will make it difficult for qualified Medicaid beneficiaries to re-certify their eligibility) will cut an estimated $326 billion from the program over the next decade, according to the Congressional Budget Office. Cuts to the federal share of aid to state Medicaid programs will “save” the federal government another $300 to $400 billion. The two together add up to at least $65 billion a year ripped from Medicaid.

To sum up: Cuts in ACA subsidies and Medicaid in the OBUB will average over $100 billion a year over the next decade. At the rate the Trump regime is spending on the war against Iran, the Pentagon will eat that up in two years.

This accounting doesn’t take into consideration the long-term costs of U.S. involvement in overseas quagmires of its own making. The Iraq War, which began in 2002, cost close to $1 trillion in direct military spending. The long-term cost of caring for the wounded, veterans’ special health care needs, and related spending has been estimated to cost an additional $2 to $3 trillion.

Those of us old enough to remember the Vietnam War will recall the “guns and butter” debate that accompanied President Lyndon B. Johnson’s slow descent into that quagmire. LBJ’s advisers assured him the U.S. could do both.

Wrong. Inflation began escalating by the late 1960s, throwing the country into a recession by December 1969. During the decade after regular combat began in 1965, prices rose by a total of 176 percent, twice the rate of inflation during the previous decade. The biggest increases were triggered by soaring oil prices due to an Arab oil embargo after the 1973 Middle East war.

President George W. Bush tried his hand at guns and butter in 2003 when, to bolster his reelection chances amid widening opposition to the Iraq War, he pushed through an unfunded Medicare drug benefit and pushed further deregulation of the financial sector. By the end of his term in office, the resulting housing bubble and sub-prime lending crisis led to the worst economic downturn since the Great Depression.

While looking up some of the specifics of that history, I stumbled across the origination of the phrase “guns and butter.” It wasn’t a 1960s coinage. It was popularized during the 1930s by German Reich Marshall Hermann Goering, who defended Germany’s huge military build-up by saying, "Guns will make us powerful. Butter will only make us fat."

It was Theodor Reik, a Jewish intellectual who fled Nazi Germany, who in 1965 took issue with the idea that history repeats itself. “This is perhaps not quite correct,” he said. “It merely rhymes.”

What does the Trump regime’s escalating military spending amid evisceration of social spending rhyme with?

Merrill Goozner, the former editor of Modern Healthcare, writes about health care and politics at GoozNews.substack.com, where this column first appeared. Please consider subscribing to support his work.

Reprinted with permission from Gooz News


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