Obamacare has been at the forefront the last three years and has been one of the most important issues the Obama administration has handled in their term. As Obama’s four year term is coming to an end and the new term is starting, many consumers are wondering why insurance premiums are continuing to rise. Also, many are now questioning how it will all of sudden start to decrease starting in 2014. Aetna, one of the largest insurers in the United States, says health insurance premiums may go up as much as 20 to 50 percent in 2014. Blue Shield mentioned that some markets may even double by the time the health care reform really starts in 2014. So why is this really happening? Many critics of the health care reform saw this coming from a mile away. This is because, starting in 2014, no one can be denied health insurance coverage. Anyone can apply through the health insurance exchanges, or direct, and get approved for health insurance even if they have a pre-existing condition.
From a care standpoint, this is obviously a great thing because everyone should have access to care. However, from a pocket book standpoint, everyone will pay the price. The main reason for this is because the healthy will have to pay for the sick. There are 8 million uninsured in California alone that might be entering the market starting in 2014 when its required to have health insurance. The sick pool will need the most money to pay for their claims, and that will only come from the healthy.
The health care laws also state that the premiums can not vary too much based on age and that it will be a community rating. This will probably benefit the older more than it will the younger. Since the older population have higher health costs, the younger segment will pay for this difference. So what do we do at this point? Well, there actually is no easy answer to that. We have to all hope that the reform rules and regulations will not effect the market as much as all these top insurance carriers do.