According to a
report, premiums for health insurance under the Affordable Care Act will be
less than initially anticipated. This will be possible the marketplaces will
promote competition from insurers.
studied insurers projected rates in 9 different states and found that the
premium for a non smoker in Oregon was around #205 and even the highest was in
Vermont area - around $413.
"The initial data suggests that competition in exchanges is
working to lower premiums, which will benefit nonsubsidized enrollees and the
federal government," Caroline Pearson,
vice president at Avalere Health, in an interview with The Hill.
Avalere's analysis was limited to 2014 premiums, so critics
feel that these rates will be hiked after the first year, under Obamacare the
premium hike cannot exceed 10% for insurance sold in the federal marketplace.
This makes it impossible for a steep rise in premiums.
The government expects sicker Americans to take advantage
of the law, before the healthy and young American citizens enter the insurance
market. The premiums may go higher for the younger and healthier generation but
compared to what was being charged like - out of pocket expenses, low coverage
and no subsidies - will change with the
onset of The Affordable Health Care Act.
The insurance would now cover, even at the lowest rate
"essential health benefits" like mental health, prescription drugs and
The insurers are now forced to compete in the marketplaces.
Comprehensive plans proposed in California, Vermont, Washington and Oregon were
very competitive in their rates.
Hannah Punitha (IRDA Licence Number: 2710062)
Sy Mukherjee, June 2013