Study: Health Law to Raise Individual Claims Cost 32 Percent
Posted at: 03/27/2013 10:56 AM
| Updated at: 03/27/2013 11:12 AM
A new study finds that insurance companies will have to pay out an average of 32 percent more for medical claims on individual health policies under President Barack Obama's overhaul.
The Society of Actuaries study says individual costs will rise largely because of spending on sicker people and other high-cost groups who will gain coverage under the Affordable Care Act. The study did not include employer-provided insurance plans, which cover most Americans.
At the state level, the estimated increases for individual plans are 80 percent in Wisconsin, 26 percent in Michigan, and 18.9 percent in Minnesota.
The Obama administration questioned the study, saying it focused only on one piece of the puzzle and ignored subsidies and other cost relief in the law.
Officials setting up Minnesota's health care exchange say they haven't seen the report and can't comment on it. Wisconsin and Michigan leaders opted not to set up state exchanges, meaning the states will be served by the federal exchange instead.
What does this mean for you?
- It could increase premiums for at least some Americans.
- If you are uninsured, or you buy your policy directly from an insurance company, the study says you could see a significant cost increase.
- If you have an employer plan, like most American workers and their families, the study does not address your coverage.
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