Actuaries groups offers sobering look at the rising costs for individual insurance coverage plans under Obama health lawUPDATED 22:58 PM EDT, March 26, 2013 | BY John Solomon
One of the nation's premier experts in numbers has a tough diagnosis for President Barack Obama's health care law.
In a report that could prove a big political headache for the administration, the Society of Actuaries estimated Tuesday that insurers will have to pay out an average of 32 percent more for claims on individual health policies under the Affordable Care Act, a cost likely to be passed on to consumers.
While some areas will see declines in medical claims costs, the report predicts the majority of states will see double-digit increases in their individual health insurance markets, where people purchase coverage directly from insurers rather than get coverage from employers.
By 2017, the estimated increase would be 62 percent for California, about 80 percent in Ohio and Wisconsin, more than 20 percent for Florida and 67 percent for Maryland. Much of the reason for the higher claims costs is that sicker people are expected to join the pool, the report said.The report did not make similar estimates for employer plans, the mainstay for workers and their families. That's because the primary impact of Obama's law is on people who don't have coverage through their jobs.
The report also predicts the law will reduce the number of Americans without health insurance from 16.6 percent to between as low as 6.6 percent after three years.http://www.washingtonguardian.com/study-health-overhaul-raise-claims-cost-32-pct-1
