We are all entering a new environment for health care that will be very different from today’s market. It is difficult to predict exactly what impact the new rules and market shifts will have on prices each year in the future.
What we do know is that the ACA provides more people with greater access to health care. The law will also address affordability by providing premium subsidies for qualified individuals. But little has been done to address the increasing costs of medical care – the primary contributing factor of premium increases. And subsidies do nothing to actually lower the total cost of coverage. Over time, it is hoped that all of these provisions working together will bring costs down for all Americans. In the short term, however, costs will go up.
The increases for 2014 that are the result of health care reform provisions are on top of the normal increases driven by medical costs, which typically range from five percent to ten percent. We expect that annual increases will return to similar levels going forward. In fact, our goals are to keep any premium increase as low as possible and to continue our commitment to working with all of our customers to find affordable plans that meet their needs.
Posted in: Health Care Costs 101