As a result of the health care reform Individual health premiums are going up. As of Sept. 23rd we will see rate increases from anywhere of 20%-54%. This is a direct result of Health Care Reform.
Under health care reform all policy will have to cover “Essential Benefits”. The Essential Benefits will have no annual max which means they are unlimited. So for an example bariatric medicine would be covered with no limitation. This sounds great if you are one that needs those services but the problem is everyone is going to have to pay for that benefit.
For new Individual policies the price is going to up. If you are on a policy that was in place prior to 3-23-10 you will be grandfathered in. Being grandfathered in might help you save a significant amount form the rate increase that is coming. If you are not grandfathered in your policy will include all of the new coverages and then you will see the rate increase at your renewal. Some carriers might give the rate increase immediately while other will wait for the renewal date.
As of Sept. 23 there will be an open enrollment period for children’s under 19. This open enrollment period will be a time where children can not be declined coverage. We expect the premium amount for a stand alone child policy to be in the ball park of $400 a month. Outside of that open enrollment children will have to go through underwriting to get a policy. If a child is approved for the policy they cannot be pre x. Right now we do not have an estimate of what that policy cost could look like.
With this health care reform we are about to see health insurance premiums at an all time high.
Please check back with us as more details become available.