Millions of Americans will be covered under Obamacare’s “COVID-21” coverage under the health law’s premium tax credits, but prices for individual policies will increase significantly, according to new data from the Insurance Information Institute.
In fact, premiums will be so high, some will even be priced out of the market entirely, the institute said.
That could leave consumers in the lurch, but the institute’s report also warns that some individuals may choose to go with private insurers.
In the case of COVID coverage, the cheapest individual policy with a COVID deductible of $1,000 will cost $1.19 a month for a family plan with a $1 million deductible.
The cheapest group plan with the same coverage would cost $2.18 a month, the Institute found.
The institute’s findings are based on data from Kaiser Permanente, the nation’s largest insurance provider, and the U.S. Department of Health and Human Services.
The institute said it received the data from a combination of government and private sources.
The data is a rough guide to the premium increases that will be experienced by individual and family policies in the United States under the new law, the report said.
The Institute found that individual insurance rates could go up as high as 30 percent, or nearly $3,000 a year, for policies with a high deductible.
In addition, consumers will face higher costs for the COVID prevention coverage.
The average cost of a COVI prevention premium is about $5,000, according the Institute.
That will apply to individual plans as well as small group plans with more than 100 people, the average cost for a COVIS coverage is about the same.
Individuals will pay about $1 less per month on average for COVIS plans than they do for COVID preventive coverage, but will see their monthly premiums rise as well.
The premium increases will apply across all types of insurance coverage, including private insurance, the analysis found.
Some of those increases could be temporary, the reports said, as insurers are still assessing COVID cases, and they may not be able to make a definitive prediction until later this year.
The new health care law does not have a set expiration date for the tax credits and the tax credit amounts for individual plans will likely increase in the future, according a spokesperson for Kaiser Pampers.
If people continue to use the tax subsidies, however, the cost of the insurance could drop significantly, the insurer said.
Individual insurance premiums in states where COVID is still a serious threat could rise to as high 20 to 30 percent of the average premium, the study said.
The tax credits will likely be available to people in the 10 states that have been most successful at preventing COVID, according Kaiser Pamps spokesperson Stephanie Schriock.
But the company noted that only the five states that use the COVIS insurance option are offering the tax-credit subsidies, and only in three of those states is COVID protection coverage available.
The company expects COVID treatment coverage to become available in those states in 2019.