What to expect if Obamacare premiums hit as much as $2,000 a month in Arizona

The Affordable Care Act open enrollment period starts on Nov. 1. People can sign up for new policies, or renew or change the ones they already have. But, there’s a lot of uncertainty about the ACA right now, especially about the costs of policies.

Premiums are expected to rise by an average of 30%, according to the Washington Post, which reviewed documents from the Centers for Medicare and Medicaid Services. That’s on top of additional increases consumers could see if subsidies end. All of that could mean premiums could be two or three times as high as they are now.

Senate Democrats have cited those subsidies, and the need to extend them, as the reason they’re voting against measures to reopen the federal government.

Jen Longdon, chief external affairs officer with the Arizona Alliance for Community Health Centers, joined The Show to talk about what this might mean for Arizonans shopping for health care coverage.

Full conversation

MARK BRODIE: So what are you hearing from people who are maybe concerned, confused, feeling like they’re not quite sure what they’re supposed to do?

JENNIFER LONGDON: Yeah, I think that that includes most people at this moment. Folks understand that they’re facing this spike in policies and their coverage costs and wanting to know what they need to do about it. And our navigators are working on that with them.

BRODIE: How challenging is it for navigators to try to help people navigate this when there is so much uncertainty?

LONGDON: Well, there are a number of issues that still aren’t quite settled, but navigators have been training for this year’s special circumstances. And they are prepared to help folks with assistance that is free. That’s most important. This is free assistance, and it’s unbiased. They don’t steer folks to any one particular policy. They help people make the best decision they can.

BRODIE: What do you think the impact could be if costs go up as much as federal officials seem to think they are and the premiums are not restored? Seems like a pretty big cost increase for a lot of Arizonans, a lot of Americans.

LONGDON: Right. So, for example, Mark, a 60-year-old couple making about $80,000 a year could see their premiums jump from 560-odd dollars to more than $2,000 a month if the subsidies expire. You know, I don’t know anyone that can pay $2,000 a month for their health coverage.

BRODIE: So in a case like that, do you anticipate that there might be more people just going without?

LONGDON: I suspect we’re going to see a rise in uncompensated care. I’ve heard folks talking about catastrophic policies that will cover catastrophes. But that won’t necessarily help you with your monthly Eliquis for your hypertension or treatment for your diabetes or a lot of other conditions.

So I do think that people are either going to forego care, or we’re going to see a huge rise in uncompensated care. And the system at this point really cannot take the additional burden of more uncompensated care.

BRODIE: Yeah, let’s talk about that just a little bit because, obviously, you know, there are going to be some cuts in Medicaid coming in the next year or so. Which will mean more people without health insurance. What does all that mean for the state’s health care system? If you have people who had been on Affordable Care Act coverage policies losing them, people who had been on Medicaid losing that — that doesn’t seem great.

LONGDON: Agreed. And you know, our health care system, especially our rural health care system and community health centers, have really worked incredibly hard to find every efficiency and savings that they have available to them. They operate on incredibly tight margins right now.

So I don’t know — I just don’t know where we’re going to find the additional money to continue to do the work. But it’s our mission, and we will carry on.

Amber Victoria Singer

/

KJZZ

BRODIE: Have you been hearing from navigators who are fielding questions from customers or potential customers about costs and what the costs might look like come Saturday?

LONGDON: I have not spoken directly with navigators, but our director of outreach and enrollment has been busy in that training process and hearing every bit of the concern from the folks who are dedicated to helping people get their coverage. They take these jobs in order to be helpful to members of their community. Many times navigators are folks who found themselves in this situation of not knowing how to get health coverage and in the process of working their own way through the system, dedicated themselves to helping others through as well.

BRODIE: So, how do you think this ends? I mean, I hate to ask you a political question, but you are of course a former elected official. You served in the state House of Representatives.

LONGDON: You keep saying that, Mark. [LAUGHS]

BRODIE: I know, and I really do mean it. So, like, this is obviously a big issue in terms of the current situation in which the federal government finds itself in the sense that it is shut down. I’m curious: Look in your crystal ball for a second. How do you think this goes down?

LONGDON: Look, I think that, well, the shutdown right now is predicated on this issue, right? Democrats refuse to take the votes necessary to reopen the government until there are guarantees around this issue.

I think, as a former elected official, I would not want to be in my home district explaining to someone how their premiums rose $1,500 a month. So, I am hoping that folks find their way through this and restore the coverage, the incentives that we need to keep people covered.

BRODIE: Let’s assume that that happens, and the premiums go back into effect. Given the sort of regular standard increases that CMS seems to think that policyholders are going to be dealing with, do you think the subsidies are going to be enough to help folks either keep their coverage or get new coverage if they don’t have it?

LONGDON: Well, I think coverage is still going to rise. I don’t know how insurance companies plan to lower costs at this point in time. However, without marketplace coverage and without some of the other issues, we’re going to continue to see more uncompensated care.