The Implosion of the Affordable Care Act
I don't know what many of the online proponents are saying about this, but as an insurance broker of 40 years I will say what nobody else wants to hear.
Last year the country had 232 health insurers. Due to ACA encroachments 65 have exited the marketplace, leaving the country with 167 to serve our nation's populace. Another health insurer in MA, Minuteman Health, just filed for bankruptcy.
Premiums have skyrocketed to such proportions ranging from 35 to in some venues over 100%. Deductibles and co-insurance limits keep growing. The percentage of yearly premium escalations is quickly eroding larger percentages of Americans' net spendable income. What will happen is that as risk pool of insurers decreases, those left will be forced to pick up the slack and add to already strained surplus capital of our nation's indemnity providers. It is not rocket science!
Repeal will become a necessity. Presently, folks are mandated to buy their health coverage from an in-state carrier where they live. Consumer choice can be better served by the removal of artificial state boundary lines and allow greater selection. This will decrease the per unit cost as companies will be able to expand their risk pool for pricing to greater numbers as opposed to confinement to their state of domicile. It would open up opportunities for more choice, and w/ lower pricing enable household spendable income to increase, putting more back into the economy and saved for retirement.
It's hard to understand why Americans can't grasp this simple concept.
President - HRODConsultants
7 年Insurance premiums will continue to climb and estimates are near 14% for 2018.
Municipal Advisor at MuniTemps
7 年With the most basic research, one can find that insurance premiums have been on the rise since before 2000, long before ACA. In fact, the trajectory of increase has barely changed. The rise, as well as companies pulling up tent stakes, has nothing to do with the ACA. The Right would like all of America to believe as much, but it just isn't so. Repealing the ACA will do nothing positive. It will just leave 20+ million additional Americans who could finally get coverage uninsured once again, and when the premiums keep rising Republicans will claim the Democrats did damage that could not be stopped. The CORRECT fix is for government to regulate health care. If providers bail, then the solution is that state and/or federal organizations should be created to provide health care. This would stop the rampant inflation in premiums, that once again, existed long before ACA.
Educating consumers should be a top priority. Most folks do not know their "plan" details. Asking for insurance information results in the client producing a card. At New Era we believe in educating the consumer on the good, the bad and the ugly in all aspects. Once they have an understanding, they are now equipped with the knowledge they need to choose the plan to fit their needs and the budget. After all, the best plan is the one that is IN FORCE at claim time.