29 March 2013

Another report says individual health plan premiums expected to rise

Story originally appeared on Market Watch.

Add this to the growing list of studies warning that individual health plan premiums are likely to rise…..

A report released Thursday morning from Covered California, the health exchange set up in the Golden State to act as a clearinghouse for coverage, says changes in the health-care overhaul bill known as Obamacare will bring up premiums 14% next year. The report, compiled by actuarial consultant Milliman, says that premiums are expected to rise another 9% due to ongoing market changes unrelated to Obamacare.

If additional coverage is purchases to augment what is covered by the exchanges, policyholders who don’t qualify for subsidies could see premiums rise as much as 30%. But lower-income groups who get government aid to pay for health insurance will see the amount they devote to coverage drop as much as 84% even with additional coverage, according to the report.

The Wall Street Journal cited the report in a story released earlier on Thursday.

The Covered California report comes on the heels of a Society of Actuaries study that says individual health plan premiums will rise nationwide under Obamacare. There also have been reports from insurers who say that individual plans, the kind that most often will be used to get coverage for the currently uninsured in state health exchanges, are likely to see an increase in premiums.

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