Today’s headlines include references to rate increases being charged by health insurers (do a search of articles reporting things such as “health insurance double-digit rate increases.” While the details of the rate increases are bound to disappoint confused fans of PPACA, going forward, understanding Affordable Care is likely to help us prepare for and perhaps even influence coming changes from Affordable Care.
The wild card involved in Affordable Care is that in spite of its original goals (of providing a Federal alternative to healthcare, which is not the case) and in spite of allegations that it represents socialized medicine (which it obviously isn’t since not only are people not automatically insured but they are required to pay for different levels of coverage and there are no cost controls placed on the price of medical care absent some efforts to control costs in Medicaid/Medicare in the Act), Affordable Care ultimately was designed for the primary purpose of getting people to pay for and have health insurance.
What does trying to get people insured mean in terms of wild cards for the American public? First, insurance is regulated by states. Products offered and the costs including increases OK’d on those products all happen at state levels. In regard to the jump in costs, some states claim there is inadequate legislation to empower state insurance departments to reject rate increases, others have temporary moratoriums or restrictions on insurance rate increases. For individuals in states where rates are jumping, it’s critical to participate in your state’s politics to try to express your educated viewpoint on such jumps, including the option of sitting back and assuming that there’s nothing to be done.
It’s also going to be important to remember the state-based regulation of insurance when it comes to the implementation of the metal-level insurance coverages described in the Affordable Care Act. While all states will have bronze, silver, gold, and platinum plans, and while FEDERAL assistance in paying for insurance coverage or in obtaining other Federal payments based on having a lower income will apply to silver-level plans under Affordable Care, the details of those plans will vary by state.
Finally, when it comes to insurance and healthcare costs, EVERYONE who uses private insurance will likely see continued increases since health insurers have already begun taking steps to preserve their profits while complying with the essential health benefits coverage under Affordable Care required by 2014.
