The wild hikes in health insurance rates that blindsided many Americans in recent years may become less frequent because of the health care overhaul.
Final rates for 2015 won't be out for months, but early filings from insurers suggest price increases of 10 percent or more. That may sound like a lot, but rates have risen as much as 20 percent or 30 percent in recent years.
No one expects price increases to go away, but some nonpartisan industry watchers say they do expect the big hikes to hit less frequently in the years to come, even though it's still early in the Affordable Care Act's implementation. They point to competition and greater scrutiny fostered by the law as key factors.
Price comparison
Public insurance exchanges that debuted last fall and were created by the law make it easier for customers to compare prices. The overhaul also prevents insurers from rejecting customers because of their health.
That means someone who develops a health condition like high blood pressure isn't stuck in the same plan year after year because other insurers won't take her. She can now shop around.
The Urban Institute, a nonpartisan policy research organization, said in a recent report that competition will help restrain individual insurance prices next year.
And it could have a lasting impact once the new markets for coverage stabilize in a few years, said Larry Levitt, an insurance expert with the Kaiser Family Foundation, which analyzes health policy issues.
"Now if a plan tries to raise premiums a lot, people can vote with their feet and move to another plan," Levitt said.
More oversight
Greater scrutiny by regulators could also keep rates from skyrocketing. The overhaul requires a mandatory review of rate increases larger than 10 percent, which can lead to public attention that insurers don't want.
"Nobody's going to get a rate increase unless they truly deserve it," said Dave Axene, a fellow of the Society of Actuaries, who is working with insurers in several states to figure out pricing. "The rigor that we had to go through to prove that the rates were reasonable, it's worse than an IRS audit at times."
To be sure, insurers and others in the field say it's too early to fully understand what pricing trends will emerge for individual insurance plans, which make up a small slice of the insured population. And some experts aren't convinced of any one outcome of the law.
Industry consultant Bob Laszewski called the idea that the exchanges will reign in prices by promoting competition an "unproven theory."
"No one has any idea what this risk really looks like yet and probably won't for two to three years," he said.
NEEDING BALANCE
Karen Ignagni, CEO of the trade association America's Health Insurance Plans, which represents insurers, said competition between insurers will mean little if too many sick people sign up for coverage on the exchanges. Insurers need a balance between sick and healthy people to avoid big claim hits that lead to future rate hikes.
Source:
.jpg)
0 comments:
Post a Comment