Premiums may be raised by health insurers
Stating the reason for seeking premium hikes, health insurers blame the health overhaul. However, the cost hikes are coming from small business owners and individuals, not necessarily the larger companies that may be able to absorb the costs. Some of the proposed hikes will cost some consumers a 20 percent or more increase on their premiums. The reform was meant to help those without access to healthcare, and yet, the insurers are targeting some of the very groups meant to be protected.
In the health care reform bill, health insurance premiums were calculated to be 1 to 2 percent at the most. Insurance companies state that keeping children on their parents plans until age 26, covering all children especially those with preexisting conditions and the like are raising costs and someone has to absorb them somewhere.
Health insurance premium hikes may affect elections
The health insurance premium hikes may affect midterm elections for many Democrats who had promised that the health care overhaul would not affect premiums. The Obama administration officials have stated that insurers are using the new law as an excuse to raise their premiums to alarming hikes. It is expected that many of the state regulators across the nation will see right through the requests.
Aetna, some BlueCross BlueShield plans, and some other smaller health insurance companies requested increases of between 1 to 9 percent for the raising medical costs. Insurers are defending themselves by stating the government made incorrect predictions into health insurance premium increases.
In the Los Angeles Times, Health Net, an insurer in California has gotten the okay to raise medical insurance premiums 16% for insurers who purchase private insurance. In Colorado, some insurers have dropped plans because they were unable to continue with increases and ways to cover costs.