Brace Yourself: Large Health Insurance Premium Increases Coming 2016

health-benefits

Health insurance companies want to increase their rates in the amount of 20-40% or more, since new Obamacare customers are sicker than expected. Blue Cross/Blue Shield plans hikes across the country of 23-54%. The insurance companies say that the increased need of patients, the high cost of specialty drugs, and grandfathered insurance plans (not meeting new federal standards) are the reasons for the rate increases. Obamacare caps insurers’ profits and require at least 80% of premiums to go toward medical care, yet insurers are claiming that their payments are more than 100% of premiums which is unsustainable. Some insurance companies may go out of business or be unable to pay claims because of inadequate rates. This will have an effect on customers, wondering if health insurance is worth the money. Switching to a more affordable plan does not guarantee you can keep your doctor. Nearly 85% of those who purchased plans from both the federal and state exchanges receive subsidies to help with the cost.

http://www.nytimes.com/2015/07/04/us/health-insurance-companies-seek-big-rate-increases-for-2016.html
Pear, Robert. “Health Insurance Companies Seek Big Rate Increases for 2016.” U.S. The New York Times, 3 Jul 2015. Web. 8 Jul 2015.

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