The Coming Increases in Health Insurance Prices

This post from Bob Laszewski on why 30% or 40% increases in the price of private healthcare insurance are well within the realm of possibility is worth reading:

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.

In states with the least mandates or for health insurance companies with the tightest underwriting now, the increase could be a lot more.

But when you add the impact of the requirement that older consumers can be charged no more than three times as much as the youngest consumers (the usual standard is now a five times difference), premiums increase dramatically for the youngest.

There ain’t no such thing as a free lunch.

He concludes: “I told them not to call this the ‘Affordable Care Act.'”

Considering that our healthcare costs are already dramatically higher than any other OECD country’s dramatically higher costs would not only be a crime but an outrage. As I’ve been saying for some time, we need healthcare reform.

52 comments… add one

  • Since I’m always off-topic, I’d like to note that I just signed up (over the Internet) with Virgin Mobile for cell phone service.

    Their customer service was top notch, with a “magic” chat box that just appeared as I was perusing the site. 300 anytime min, no contract, $35/month.

  • I think there are lot Companies which provide the benefits to the Seniors as well as the Women more then anyone as they think these are the only ones who needs the Medicaid at most, but i guess Medicaid is not something which is fixed to someone. Infact everyone may need Medicaid at some point of time ….

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