Americans see their medical costs skyrocketing next year by the most in more than a decade, according to data published Monday by the Federal Reserve Bank of New York.
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 US 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.
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If a deal to extend the enhanced subsidies isn’t reached, many Americans will be forced to swallow 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, according to calculations from the Center on Budget and Policy Priorities.
Emma Ockerman is a reporter covering the economy and labor for Yahoo Finance. You can reach her at emma.ockerman@yahooinc.com.
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