Understanding Health Insurance Changes for 2021

This past year undoubtedly brought our country unprecedented health care and health insurance concerns. This has underscored the need for us as individuals to stay abreast of health current events and health care news. As a leading health care insurance agency, The Nowell Agency strives to keep our valued clients well-informed on health care trends 2021 so that you can make informed decisions for your health care insurance moving forward. 

Health Insurance Premium Rate Changes for 2021

What’s new in healthcare today? 2021 healthcare plans for individual plans will reflect a slight increase in premiums for 2021, about 1% or so overall. The exception to that increase is the benchmark premiums in 2021, which are dropping slightly. While individual health insurance premiums tend to vary from state to state, it does appear that benchmark plans are dropping in many states and premium subsidies are based on the benchmark plans. 

What is the out-of-pocket limit 2021? According to ACA regulations, as long as you receive your health care from an in-network medical provider, the maximum out-of-pocket limit is capped.  For 2021, that limit has increased to $8,550, which also applies to large group plans and self-insured plans.

What are changes to alternative health care arrangements 2021? One other change to health insurance 2021 deals with your ability to get affordable insurance through alternative means such as short-term, limited-duration insurance, health reimbursement accounts, and sharing insurance between multiple companies. These may no longer be an option for you, due to potential legislation and legal issues. 

What Affects Health Insurance Costs in 2021? 

A few main factors affect the current cost of health insurance premiums: the private health insurance market and claim levels from the previous year. During Covid-19, most people have avoided non-necessary medical services which reduced the number of claims made in 2020. However, there was also a huge influx of Covid-19 patients in the hospital which is extremely costly. This has made the cost of premiums for 2021 difficult to predict, as it is usually based on claim levels from the previous year. Additionally, insurance premium rates for 2021 rely on the private insurance market. This market is unpredictable this year due to the fact that so many people have lost their jobs, resulting in the need to buy their own health insurance. Yet with the high cost of private insurance, most unemployed cannot pay and must then rely on Medicaid.

Medicaid Changes 2021

Covid-19 has resulted in many changes to healthcare in 2021 and Medicaid is no different. The Biden Administration has extended the public health emergency designation which means that The Families First COVID-19 relief package will continue, where federal sharing in Medicaid is higher. 

Another 2021 Medicaid change focuses on Medicaid waivers that were originally granted as a way to modify healthcare plans to better fit the current population in those plans and reduce premium costs for you, the insured. The Biden Administration is going to revisit and review waivers, perhaps require adjustments by the states, or even replace state plans with a general federal plan that will apply to all states, removing state flexibility and perhaps raising the cost for the individual.

What You Need to Know About Health Insurance 2021

Moving into health care 2021 will bring forth a few changes to the health insurance world. The best plan is to stay current on 2021 health insurance plans, such as those provided through The Nowell Agency, be aware of dates for open enrollment 2021 health insurance, and continue to read current health care issue articles so that you know what you’re potentially facing. The Nowell Agency is here with you, through it all. Our experienced agents are standing by, ready to help you find the best medical insurance Mississippi can offer. Give us a call today to find out more!