Consumers Expect Medical Costs to Surge by Most in Over a Decade

Americans expect their medical costs to skyrocket next year by the most in more than a decade, according to data published Monday by the Federal Reserve Bank of New York, Emma Ockerman reported for Reuters.

If a deal to extend the enhanced subsidies isn’t reached, many Americans will be forced to absorb massive monthly premium increases.

Consumers’ median expectations for annual growth in medical costs hit 10.1% in November, the New York Fed said.

Those fears of bigger medical bills come as enhanced Affordable Care Act subsidies are set to expire at the end of the year — a looming deadline that led to the longest government shutdown in U.S. history, which ended without a resolution.

Expectations for healthcare costs in the year ahead last approached this level at the beginning of 2014, when consumers saw costs rising by 11.15%.

In addition, the survey found that in November, “perceptions about households’ current financial situations compared to a year ago deteriorated notably.” That was true even as inflation expectations remained unchanged and views of the labor market improved slightly.

If a deal to extend the enhanced subsidies isn’t reached, many Americans will be forced to absorb massive monthly premium increases.

A family of four making $130,000, for example, could see annual premium costs rise from $11,050 with enhancements to $23,909 without them, according to calculations from the Center on Budget and Policy Priorities.