Health insurance brokers across the country are starting to prepare their clients for significant increases in health insurance premiums. This includes individual policies, which many small-businesses owners purchase, as well as small business and other group policies. In some cases, premiums may triple.
The increases in premiums are a consequence of the changes to the healthcare sector required under the Affordable Care Act also known as ACA or Obamacare. In the fall, insurers will need to offer a slew of additional medical services at no cost to policyholders. They will also be required to use new underwriting procedures. These and other changes will require insurers to charge higher premiums to offset these additional costs. State regulators can deny the premium increases, but the subsequent financial losses to insurers will lead them to exit unprofitable markets altogether.
The Obama administration may announce delays and other strategies to minimize the premium increases this fall, but it's also likely to address this issue by requiring providers, like doctors and hospitals, to accept less compensation for their services.
Read the full article at Forbes.
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