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Premium Increases Under Obamacare May Be Overstated

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Predictions of sharp increases in health-insurance premiums for people getting coverage under the U.S. Affordable Care Act have been overstated and many states will see little to no change, researchers at Rand Corp. found.

Predictions of sharp increases in health-insurance premiums for people getting coverage under the U.S. Affordable Care Act have been overstated and many states will see little to no change, researchers at Rand Corp. found.

Out-of-pocket premiums for most individuals who buy health plans through new insurance exchanges will decline because of federal subsidies, the Santa Monica, California-based nonprofit research group said today in a report. The researchers looked at insurance markets in 10 states to project costs as core parts of the 2010 health law kick in next year.

“Rates for policies in the individual market are likely to vary from state to state, with some experiencing increases and some experiencing decreases in cost,” Christine Eibner, a Rand senior economist and the study’s lead author, said in a statement. “But our analysis found no widespread trend toward sharply higher prices in the individual market.”

Read the full story here: http://bloom.bg/14bhidg

Source: Bloomberg

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