By Richard Kay, New Jersey Insurance broker
Is the deep subsidy over for healthcare in 2022?
It looks like it. In 2021 besides the regular subsidy everyone was getting on a sliding scale based on income there was also deeper subsidy if you collected unemployment in 2021. In 2022 being on unemployment will no longer get you a larger subsidy. The unemployment subsidy was an extra handout due to Covid-19.
Based upon the numbers I am seeing for 2022 the older you are the higher percentage of increase you will see for your health insurance.
The average increase I am seeing in New Jersey is anywhere from 30% to 40% over what someone was paying in 2021. Younger people less then the average and older people more then the average.
Subsidy incomes limits have went up significantly.
Single up to 77280 to get a subsidy
Husband/Wife up to 104520
Family of 3 131760
Family of 4 159000
That is good news.
I have a cousin in New Jersey who paid 108/mo in 2022 will be paying 188/mo for the same plan who is in his 60’s. An increase of 74%.
A family of 3 will go from 267/mo to 452/mo. That is an increase of 69%. The husband is in his 60’s.
Was this only in New Jersey? No
I called my friend in South Carolina. Paying 44/mo going up to 115/mo. For the same plan also in his 60’s. 161% increase. He was on unemployment in 2021 which was a factor in his large 2022 rate increase.
You can look at this 2 ways. These 2 individuals would be paying 800/mo if they didn’t get these subsidies. The family would be paying over 1000/mo. Or how can they raise these percentages so high. The latter is what most people are going to look at since no one ever wants to pay more. These very low costs cannot be sustained and the increases are starting.
*The examples used in this article are specific to the person, their income, where they live and the insurance companies rates/plans.