Texas Health Insurance Spending has dropped but premiums have continued to rise

Dallas Health Insurance out-of-pocket expenses have fallen according to a new study released. However, premiums costs have increased by an almost even amount leading to mixed results.

Dallas, United States – January 27, 2018 /PressCable/ —

According to a new study released, Texas health insurance consumers experienced a nearly 12 percent average decrease in out-of-pocket health spending during a two year span. This was consistent with savings seen across the nation. However, premiums also rose by the same percentage and by a bigger dollar amount. The study reviewed spending data from more than 83,000 adults and health-related expenditures in 2014 and 2015.

According to the journal JAMA Internal Medicine, Texas residents categorized as lower income experienced an even greater reduction in out-of-pocket health insurance costs, approximately 21.4 percent. The savings in out-of-pocket health spending for individuals of all incomes averaged $74. Average premiums for families increased $232.

Texas residents whose income is 400 percent of the poverty level, or $48,240 for a single person, experienced a premium increase of almost 23 percent over the two-year span.

An interesting takeaway the study identified was a shift in health-care spending. Once the Affordable Care Act (Obamacare) was implemented, higher-income households spent more while lower-income families spent less.

When families spend greater than 10 percent of its income on out-of-pocket health costs, which may include deductibles, co-payments, and coinsurance, these expenses are defined as “high burden”. With premiums, high-burden costs are defined as 9.5 percent of total income.

Texas health insurance consumers spanning all income groups experienced a 20 percent reduction in high-burden out-of-pocket spending but also a 28 percent increase in high-burden premium costs.

The key takeaway according to the JAMA study is that the Affordable Care Act has reduced out-of-pocket costs for many consumers but hasn’t yet done the same for lowering the premium component of health insurance spending.

Rick Thornton, a Texas health insurance agent, thinks overall this reflects positive progress for health insurance. “Texas families have reduced their medical costs since ACA was implemented which is a step forward. But premiums spending still needs to fall. I believe modifications to the law can get us there,” he states.

2014 and 2015 were the years used to conduct the analysis given private individual Obamacare plans was available from government-run marketplaces. Also, the ACA mandated all health plans must cover preventative services and contraception without imposing out-of-pocket charges on patients.

In addition, more states (all but 18) experienced Medicaid benefit expansion to poorer families through ACA thereby reducing health insurance expenditures in states such as Texas.

Insurance4Dallas, (I4D), helps insure all of Texas, Oklahoma, Arkansas, Arizona, Louisiana, New Mexico, Alabama, Virginia and Florida. Insurance4Dallas provides consumers with detailed information on health insurance with the ability to purchase health insurance online. Insurance4Dallas provides a full spectrum of health, dental, vision, life and ancillary insurance products, providing a diverse selection of price and benefit options complemented by personal customer service. Available via phone, email or fax, Insurance4Dallas answers consumer questions throughout the purchasing process and during the utilization of its health insurance policies.

Contact Info:
Name: Rick Thornton
Email: mail@insurance4dallas.com
Organization: Insurance4Dallas
Address: 4516 Lovers Lane , Dallas, Texas 75225, United States
Phone: +1-972-219-6004

For more information, please visit http://insurance4dallas.com/texas-health-insurance/

Source: PressCable

Release ID: 293036