Why Obamacare Premiums Will Probably Rise More Quickly Next Year

Seeing the headlines splashed across the more conservative publicatons such as the Wall Street Journal “Insurance premium hikes at 50%” made me incredibly anxious, but I should know better than that, a headline is designed to tease and thereby entice purchase. The reasons for the premium hikes laid out by Jonathan Cohn in this article all make sense, especially if the insurance companies are hedging their bets against the King v Burwell Supreme Court case that will be announced within the next month. If the Affordable Care Act loses, millions of people will lose their health care coverage and the companies will need to cover their costs. So I can definitely see why the insurance companies are forecasting their financial needs on the high side rather than taking any risks. However, I didn’t think of the issue that Jonathan Cohn brought up, the high uptick in medical diagnostic services and its implications, it could very well be a temporary phenomenon, millions of newly insured patients finally getting the tests and services they have long denied themselves due to lack of coverage and this surge will die down. It is still too soon to make any accurate predictions over which way the Affordable Care Act will be impacted by the judiciary, following that, the insurance companies bottom line and finally the huamn behavior factor, we just can’t know what the future will bring us. All we can do is stay calm.

read the article:

http://www.huffingtonpost.com/2015/05/23/obamacare-premium-shock_n_7423912.html?utm_hp_ref=politics

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