As a licensed health insurance agent in North Carolina, I have been hearing this question a lot. The question isn’t whether or not it will be impacted, the question is how much. The health insurance companies are not government run entities, so any time the government mandates a change to a health insurance policy, that change is going to be reflected in the premium, up or down.
Some of the changes that will impact health insurance premiums are:
1. Essential Health Benefits – benefits that all health insurance programs will be required to cover. Click here to read my article on the Essential Health Benefits.
2. Age Band – older individuals cannot be required to pay more than three times what a younger individual pays,which may result in lower premiums for older individuals, but higher premiums for younger individuals.
3. New taxes and fees on premiums – the law imposes a new sales tax on health insurance premiums. This might add as much as $ 475 per year to the average family premium.
4. Pre-existing condition requirement – individuals with pre-existing conditions will be accepted and pay the same price as those without – causing the premiums to go down for those with pre-existing conditions, and to go up for others.
5. Lower deductible limits – resulting in less out of pocket for larger health events.
How are we going to pay for the increased health insurance costs? Financial assistance in the form of subsidies (also known as premium tax credits) will be available for people depending on their yearly income.
When does it start? Enrollment is slated to begin 10/1/2013 for coverage beginning 1/1/2014.
If you’d like more information on health care reform, affordable health insurance, life insurance, dental insurance, or disability insurance in North Carolina, I’m happy to assist. Call me at 919-943-5577, e-mail me at firstname.lastname@example.org or visit my website www.healthinsuranceraleighnc.com.