The premiums for health insurance in Springfield, MO continue to increase.
There are now three things guaranteed in life; death, taxes and higher health insurance premiums. The sharp increase of insurance rates since the implementation of the Affordable Care Act is devastating. Many in their 50s or early 60s are paying more in health insurance premiums then they are on mortgages and the sad part is, though the insurance companies are collecting more money than ever before, they are actually making less and many are closing their doors after huge financial losses.
The sharp and unending increase in health insurance rates and the added amount of unintelligible transparency has provided an unprecedented spectacle to arise. Insurance carriers must now publish their intended rate increases after a bill was passed last year and now consumers can see what the next year has in store. Health insurance in Springfield, MO is currently set to have a dramatic increase of 10%-30% depending on the carrier and the plan level. In the past, a 10% increase would have been considered unreasonable but now that the rates have increased up to 400% of the years before the Affordable Care Act, many believe the health insurance rates are impossible.
The most devastating of these increases for the Springfield, MO market will be Coventry as they are the most popular insurer for the area, especially for those that have qualified for a tax credit. This increase in health insurance rates will lead to sticker shock for many whom have grown accustom to paying only $20-$50 a month after their tax credit is applied.
Though only time will tell, many agents and brokers selling health insurance in Springfield, MO are anticipating a rise in those electing to go uncovered verse pay thousands in premium. The penalty for being uninsured for those in Springfield, MO will be $675 per adult or 2.5% of their household income (whichever is higher). This seems like a harsh penalty but when compared to a $500 per month premium that many will face, some will not be able to afford to not choose the penalty.