Are Insurance Premiums On The Rise?
Understanding The Economy’s Impact On Insurance Rates
With the recent enactment of the Affordable Care Act, it is important that individuals and businesses pay attention to news regarding health insurance and why insurance premiums will increase in the near future. Yes, it is called the Affordable Care Act, but that does not mean that premiums and insurance rates will not adjust with the improvement of the economy.
While economic growth is favorable, especially considering the Great Recession we recently escaped from, it will inherently increase insurance premiums and alter coverage options. This will be most evident when looking at health insurance costs employers pay, as with the improving economy, they will be required to pay more for their team’s health insurance coverage.
However, there is no reason to panic. President and CEO of wholesale broker Burns & Wilcox, Alan Jay Kaufman, states that we should not expect too much “firming” to take place until the economy steadily continues its journey upwards. With minimal growth in the economy and a period of recovery still taking place, insurance rates are not expected to skyrocket any time soon. However, as the economy continues to improve, we can expect the insurance market to be heavily impacted.
If you are wondering how the ACA will affect your insurance rates, please do not hesitate to give us a call. Serving Beaumont, Banning, Calimesa, and Redlands, contact Little & Sons Insurance Group for all of your California health insurance needs. We work for you, not an insurance company! Allow us to provide you with the unmatched security and protection we have been providing California residents with since 1922.