Health Premiums Could Soar $4,000 for Americans 50+ Under DOL Proposal

AARP is opposing proposed Department of Labor regulations and legislation that would significantly increase the benefits of short-term health insurance plans for younger Americans, while eliminating the protections and premium caps currently protecting Americans 50 and older, reports Financial Advisor. "The ultimate concern is we return to a market where all the things that the Affordable Care Act (ACA) prohibited, like pricing older Americans out of the market, are allowed again," says AARP's Megan O'Reilly. Under the proposal, the short-term health insurance market would transition from 90-day "skinny" policies to 364-day policies, while being able to hike premiums based on age and deny coverage to those with pre-existing conditions such as cancer, diabetes, and asthma. The Urban Institute calculates that the proposed regulatory changes will boost premiums between 16.6 percent and 20 percent, or more than $2,000 in 2019. AARP claims premium increases could reach $4,000 or higher annually for 60-year-olds who purchase a silver plan in the ACA marketplace if the short-term marketplace is permitted to expand. "We know we have 6 million 50-64-year-olds in the ACA market," O'Reilly says. "They could be refused coverage in the short-term market. Another big point with these plans is that 40 percent of 50- to 64-year-olds have pre-existing conditions, so they could be denied coverage for any of these."