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"Our fears have been confirmed," said Doak. "For some consumers, the cost of health insurance will increase significantly. This is more proof that ObamaCare will hurt
After filings were made by the insurers that plan to offer products in the marketplace, the
The leading drivers of the increased rates are:
- The morbidity factor or market risk of guaranteed-issue entrants with no annual or lifetime limits;
- The incorporation of Essential Health Benefits to make plans ACA compliant;
- Taxes and fees being passed through the rates to the consumer.
"From an actuarial standpoint, this confirms the obvious," said OID Chief Actuary Frank Stone. "Insurers must increase their premiums due to the additional requirements of ObamaCare."
The rate increase for the small group market is expected to range from 10 percent to 25 percent. The increase is smaller because the small group market has had guaranteed issue since 1995.
Individual consumers may not have to pay the full premium for health insurance due to federal tax credit subsidies, which create an additional hidden cost to
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