During the debate about the “Affordable Care Act” (an ironic name in light of what follows), the Congressional Budget Office released numbers indicating a marginal rise in health insurance premiums as a result of the bill. According to one industry observer, the impact will be far more significant:
In recent weeks, the Obama administration issued a series of proposed regulations for the health insurance market. Since then, I conducted an informal survey of a number of insurers with substantial individual and small group business. None of the people I talked to are academics or work for a think tank. None of them are in the spin business inside the Beltway. Every one of them has the responsibility for coming up with the correct rates their companies will have to charge.
Hold onto your hat.
On average, expect a 30% to 40% increase in the baseline cost of individual health insurance to account for the new premium taxes, reinsurance costs, benefit mandate increases, and underwriting reforms. Those increases can come in the form of outright price increases or bigger deductibles and co-pays.
Yikes.
He goes on to say that younger policyholders (in their 20s and 30s) could actually see their premiums double. Yee ha!
You can read the whole thing if you want to see it in greater detail.
Our intent is not to scare you here. But to warn you. The impact on both individuals and small employers will be immense. Our goal is to help you navigate these changing times by offering advice, solutions, and when appropriate, alternatives. We hope you stick with us.