Posted this on the other thread by accident.
http://www.factcheck.org/2011/10/fac...ance-premiums/
Interesting article. Brings up pros and cons of the ACA, and the fact that pretty much no one knows what's going to happen. Also didn't know that carriers increasing rates above 10% would have to justify that rate of increase through a formal review.
"look at the projection for long-term growth — 6 percent, or 6.5 percent. That’s not that different from the increases that occurred several years before the law was passed.
Of course, that raises the question of cost control and whether the law can have any success on that front. For now, what happens to health care spending and premiums in the future is an educated guessing game."
"A health policy analyst at the National Association of Insurance Commissioners told us more information will be available as insurance carriers start facing a review of any rate increases beyond 10 percent. (Right now, NAIC too says the law has added about 1 percent to 3 percent to premiums. NAIC has a policy of not allowing its staffers to be quoted by name.)"
"We looked at the premium issue last fall when some insurance carriers in a few states announced double-digit hikes for plans on the individual market and Republicans quickly blamed the health care law. Insurance companies, regulators and experts told us the law was responsible for about 1 percent to 3 percent of rate increases in this market. And it’s the same this time around."
"Health insurance premiums for employer-sponsored family plans jumped a startling 9 percent from 2010 to 2011, and Republicans have blamed the federal health care law. But they exaggerate. The law — the bulk of which has yet to be implemented — has caused only about a 1 percent to 3 percent increase in premiums, according to several independent experts. The rest of the 9 percent rise is due to rising health care costs, as usual.
Furthermore, the increase caused by the law is a result of the increased benefits it requires, a factor Republicans generally ignore. So far, insurance companies have been required to do the following:
◾ Cover preventive care without copays or deductibles.
◾Allow adult children to stay on parents’ policies until age 26.
◾Increase annual coverage limits.
◾Cover children without regard for preexisting conditions.
On the other hand, the fact that the law caused any increase at all cast more doubt on Obama’s promise that the law “could save families $2,500 in the coming years.” We’ve been calling that claim into question for several years now."