Illinois residents who purchase health insurance through the Affordable Care Act (ACA) marketplace are facing a significant increase in premiums for 2023. According to recent reports, premiums are expected to rise by an average of 78% across the state. This substantial hike is likely to affect over 300,000 Illinoisans who rely on the ACA marketplace for their health insurance coverage.
The main driver behind this increase is the expiration of temporary subsidies provided by the federal government during the COVID-19 pandemic. These subsidies, which were part of the American Rescue Plan Act, helped keep premiums low for many consumers. However, with their expiration, insurance companies are now raising their rates to account for the increased costs.
The 78% average premium hike is a statewide average, with some areas experiencing even higher increases. For example, residents in certain parts of the state may see their premiums rise by as much as 100% or more. This will undoubtedly put a significant strain on many households, particularly those with lower incomes who may struggle to afford the increased costs.
The Illinois Department of Insurance has approved the rate increases, which will take effect on January 1, 2023. The department notes that while the increases are substantial, they are still lower than what insurance companies had initially requested. Nevertheless, the hikes are likely to have a significant impact on the state’s healthcare landscape.
To mitigate the effects of the premium increases, the state is encouraging residents to explore their options and shop around for coverage during the open enrollment period, which begins on November 1. Additionally, some consumers may be eligible for financial assistance, such as subsidies or tax credits, to help offset the increased costs.
The premium hikes in Illinois are part of a broader national trend, with many states experiencing significant increases in ACA marketplace premiums. The increases highlight the ongoing challenges facing the US healthcare system, including rising healthcare costs and the need for affordable, accessible coverage. As the open enrollment period approaches, Illinois residents are urged to carefully review their options and seek assistance if needed to ensure they have adequate and affordable health insurance coverage in 2023.