Health Insurance Premiums to “Skyrocket” Next Year
Health Insurance Premiums to "Skyrocket" Next Year
(Washington, D.C.) – Last week, Health and Human Services Secretary Kathleen Sebelius testified before Congress that, while there are likely to be health insurance rate increases next year, these increases will come at "a smaller pace than what we've seen since 2010." According to insurance industry representatives however, rates are set to "skyrocket," as companies continue to adapt to the Affordable Care Act (ACA), also known as Obamacare. The combined effect of costly new mandates, a less healthy pool of consumers, and continued changes to the law means that some companies participating in the Obamacare exchanges will lose money, and likely seek federal bailouts. Next year, premium increases will vary based on region, plan and carrier, but some buyers will see their rates triple, according to these projections.
Health insurance premiums had been climbing 5-6 percent annually prior to enactment of the President's health care law. The new and more dramatic rate increases come despite the President's promise that American families would see their insurance premiums fall by about $2,500 per year if the health care law was put in place. Instead, the President recently told Latinos they may need to prioritize health insurance over purchases such as phones and cable service. Insurance companies are expected to submit their proposed rates to regulators in May, with final rates being announced during the summer.
Daniel Garza, Executive Director of The LIBRE Initiative, released the following statement:
"This is simply the latest evidence that the American people are not getting the truth about the cost and effects of this law. Rates are up by an average of nearly 40 percent for many insurance buyers. Now the Administration is trying to downplay upcoming premium increases that will be unbearable for many families, and which could price millions of people out of the insurance market.
This is not what the people were promised, and that's why so many Latinos are rejecting it. The time for accountability is now and Hispanics will not warm up to this failed program without serious systemic reforms."