Obamacare may boost premiums in 3 states
Ohio, Minnesota and South Dakota may see higher payments for individuals, but more states will see no change.
With states readying their Affordable Care Act health insurance exchanges for October enrollment, some residents are wondering how the efforts will impact their health care costs.
The question about Obamacare's impact has been answered, at least in part, by a new study from the policy think tank Rand, which looked at how the market for individuals and small businesses will be impacted in 10 representative states.
Individuals in three of those states -- Minnesota, North Dakota and Ohio -- could see premium increases of up to 43%, although Rand cautions that the increases don't include federal exchange tax credits, which would lower the effective price for consumers.
Half of the 10 states studied by the group will experience no increases for individuals, while two -- Louisiana and New Mexico -- may see decreases in premiums. The states with no projected changes are Florida, Kansas, Pennsylvania, South Carolina and Texas.
"Our analysis shows that rates for policies in the individual market are likely to vary from state to state, with some experiencing increases and some experiencing decreases in cost,” Christine Eibner, the study's lead author and a senior economist, said in a statement.
Despite that assessment, Rand notes that there's overall good news for consumers, with the study finding "no widespread trend toward sharply higher prices in the individual market," according to Eibner.
The findings come as more Americans continue to oppose the law than support it. About 42% harbor a negative view of the Affordable Care Act, with only 37% saying they support it, according to a Kaiser Family Foundation survey released this month.
One of the chief reasons for opposition is concern about the potential cost and impact of the health-care overhaul, which requires large employers to provide health-care insurance to their full-time employees. Already, employers including Regal Entertainment Group (RGC) have cut employee hours to avoid paying for insurance.
The differences between the states' expected premiums depends on how many residents already carry insurance. Because Ohio, North Dakota and Minnesota already have highly insured populations, fewer young, healthy people will be joining those marketplaces. The law depends on an influx of younger participants to lower prices for the overall pool.
The survey found some good news for small group enrollment. Rand noted, "Small group premiums largely will be unchanged under the Affordable Care Act."
Follow Aimee Picchi on Twitter at @aimeepicchi.
WE have been told here in the state of Alabama an increase of 5% plus $3,000 per year due to OBAMACARE. He is an idiot, I'm not stupid and I knew it was going to cost more. But of course our wonderful government exempted themselves from it.
Does this mean he was a liar aimee?
God aimee you are one stupid kuntbag
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] As expected, the major averages displayed early strength thanks to a better than expected GDP report for Q2 (4.0% versus Briefing.com consensus 3.2%) and a set of upbeat quarterly earnings. The S&P 500 trades higher by 0.4% with seven sectors showing gains.
All six cyclical groups trade In the green with gains between 0.3% and 0.7%, while countercyclical sectors are bit more mixed. The health care space (+0.8%) sits atop the leaderboard, whereas consumer staples ... More
More Market News
After enjoying a smooth rise in stock prices since May, investors are about to be hit with another bout of volatility.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'