In the first full year of the Affordable Care Act (ACA), the health care cost curve has not bent. A survey of brokers by Morgan Stanley, reported in the
Fiscal Times, found double digit rate increases in both the small group and individual markets.
Small group fees increased by 11 percent on average, while individual plans went up 12 percent. Some states saw much higher increases, although the specific data by state was not reported.
The survey did not include plans purchased through healthcare.gov or state ACA exchanges. According to the
Fiscal Times article, the average cost of plans purchased through exchanges was 4 percent less than privately purchased plans. Exchange plans tended to have much higher deductibles, however.
Under ACA rules, most health insurance plans must cover a broad range of services. Insurers can no longer adjust pricing based on the health status of enrollees. Morgan Stanley analysts pointed to the increased mandatory coverage as well as new insurance company taxes as primary drivers for the price hikes. Less clear was how the competition, subsidies and small employer tax breaks available through the exchanges affected prices.
Little & Son's Insurance Services can help groups and individuals in Beaumont and Banning, CA, find the coverage you need. To learn more,
contact us.
