In recent years there have been unprecedented rate increases on almost all Affordable Care Act (ACA) policies. The losses have been piling up in recent years and there is currently no way to stop the bleeding. However, this is the first year of real change in the health care market. The good news is that viable options exist and most people are not aware that they are encouraged to look outside the box. Adaptation is key in our nation’s changing health system.

In 2010, the federal government approved our first mandatory health insurance plan for most citizens under the age of 65. These changes arose both from unregulated health care practices and from the promise to help those who couldn’t afford insurance or didn’t qualify for a plan because of health problems. Funding for this company was redirected from the social security administration and other facets of government with restrictions on how health care providers (insurance companies) could redirect profits. The objective of this plan was to eliminate bad practices and corruption to help the common good. The mandate also eliminated the practice of underwriting (checking the health of prospects to grant an approval), considering it discriminatory. The belief was that if enough people signed up for the new compulsory insurance, the risk of non-subscription would be offset. The powers that be were wrong.

Many healthy citizens did not accept the higher premiums for a couple of reasons. Some saw this mandate as forced insurance that went against their constitutional rights. Others saw their premiums increase due to the mandate and were unwilling to pay the additional cost for the greater good. Because most of these Americans decided to “self-insure” instead, or go uninsured, the system was financially doomed out the door.

To cope with the losses, participating insurers (virtually every health insurance giant in the US) began restricting networks to the point of creating nationwide HMOs that provide little or no coverage outside of small networks. They also dramatically increased deductibles in an attempt to help control costs. When both strategies failed, as a last resort, they began increasing annual premiums to unfathomable levels, with some people experiencing rate increases of over 60%. Today, many ACA insurers are projected to increase their premiums by an average of more than 25% by 2018, with no end in sight. In Texas, on the exchange (Healthcare.gov), the only original health insurance company left standing is Blue Cross Blue Shield. All the others — Humana, Scott and White, Aetna and United — have left the state, as well as many other states, to protect themselves from continued losses.

Changes have already gone into effect that will permanently alter the healthcare platform. In January 2017, the newly elected president issued an executive order to all facets of the federal government not to enforce ACA mandates for any individual, business, or entity. With a Republican House and Senate, President Trump knew it was only a matter of time before the mandate was removed and he wanted to give Americans open options without the threat of sanction. Whether or not the ACA continues remains to be seen. In my opinion, it is very unlikely that Obama-care will be the favorite in the future.

Until January of this year, secondary health insurance options (term issued by the Government for those health insurance companies that did not comply with the mandate) that refused to offer compulsory insurance had to tiptoe through the new law from the country. The Federal Government did not welcome competition and restricted certain coverage offered by these companies. To move forward, many of these companies had to offer hybrid packages that did not resemble the mandatory standard. Only a few of these businesses stood on the sidelines at the start of the ACA, seeing most of their existing book of business walk out and across the street. In fact, many of these secondary solutions ended up failing. The few that have survived have not suffered the losses that the ACA giants saw firsthand. They held firm to the belief that it was not possible to eliminate subscription and control costs simultaneously, and they were right. Today, these secondary health insurance companies are welcomed with open arms by many who do not receive a subsidy (premium credit issued by the Federal Government for those with lower incomes) and have absorbed huge rate increases in recent years. years. Outside of the ACA, they are the only plans with affordable premiums and unrestricted networks. In addition, they have not been exposed to any non-traditional annual rate hikes, unlike ACA plans.

There is no telling what the future holds with the health care industry, only a promise of change. Arguably, our current field of health care has spurred the most controversial issue in the history of the United States. The country is divided over differing philosophies of compassion for the poor and sick or the need to stop the multi-billion dollar losses that continue to mount. Regardless of the outcome, it is clear that every citizen has an obligation to freely explore options for their individual or family needs. Thanks to the executive order, options are now available without the threat of a financial penalty.