Residents of New Mexico will see a health insurance premium increase this year between 36 and 41 percent for mid level insurance plans.
Sixty percent of consumers in New Mexico will qualify for subsidies to lower the cost of the increasing premium, but the other 40% will see their cost of living increase dramatically as healthcare has become a significant portion of household budgets.
The increase will represent the largest increase in the four-year history of the state’s health insurance exchanges.
“I feel sorry for the other 40 percent though — they have to pay the full brunt of the rate increases.” -John Franchini, the state’s insurance superintendent
Why The Health insurance premium increase?
The increase is essentially two-fold. For one thing, not enough individuals are buying into the marketplace in order to keep it viable. That, coupled with the overall instability of the exchange is leading to the health insurance premium increase.
The City Vs City cost of living calculator will account for these premium increases once they come into effect. In the meantime, it’s possible adjust the “Additional Spending” category on the Summary screen of the app.
This will approximate how the roughly 40% increase in healthcare premiums will impact your financial situation. In particular, the extra pre-tax income you need to earn so that you have enough income after paying taxes to cover the increased healthcare cost).
Of course, you can also use City vs City to help move to one of the healthier states in the nation to avoid rising healthcare costs. Our app compares your current city with another of your choosing. You can stack up the cost of living in these cities to see which one makes more sense for you.
There are all types of factors to consider when planning your next move. Do the right thing and make City vs City a tool you don’t go without.
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