“WASHINGTON (AP) — A new study finds that insurance companies will have to pay out an average of 32 percent more formedical claims under President Barack Obama’s health careoverhaul.
What does that mean for you?
It could increase premiums for at least some Americans.
If you are uninsured, or you buy your policy directly from an insurance company, you should pay attention.
But if you have an employer plan, like most workers and their families, odds are you don’t have much to worry about.
The estimates from the Society of Actuaries could turn into a political headache for the Obama administration at a time when much of the country remains skeptical of the Affordable Care Act.
The administration is questioning the study, saying it doesn’t give a full picture — and costs will go down.
Actuaries are financial risk professionals who conduct long-range cost estimates for pension plans, insurance companies and government programs.
The study says claims costs will go up largely because sicker people will join the insurance pool. That’s because the law forbids insurers from turning down those with pre-existing medical problems, effective Jan. 1. Everyone gets sick sooner or later, but sicker people also use more health care services.
“Claims cost is the most important driver of health care premiums,” said Kristi Bohn, an actuary who worked on the study. Spending on sicker people and other high-cost groups will overwhelm an influx of younger, healthier people into the program, said the report…”
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