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Healthcare Law Will Raise Some Premiums, Study Says

A new study by the consulting firm Milliman, commissioned by the State of California, indicates that individual insurance premiums will increase under the federal healthcare law due to more less-healthy people being added to the market, a requirement that plans offer richer benefits and cover more of the cost of care, and new taxes and fees on insurers that will be passed on to consumers...
April 2, 2013

A new study by the consulting firm Milliman, commissioned by the State of California, indicates that individual insurance premiums will increase under the federal healthcare law due to more less-healthy people being added to the market, a requirement that plans offer richer benefits and cover more of the cost of care, and new taxes and fees on insurers that will be passed on to consumers. However, low-income individuals will see premiums and out-of-pocket costs decline due to income tax credits and other subsidies, with the total cost of care for those who are currently insured and have incomes less than 250 percent of the poverty level to fall by 76 percent on average. In contrast, premiums for higher-income individuals who are currently insured and do not qualify for the federal subsidies will rise by an average of 30 percent, and their total cost of care will jump by an average of 20 percent.

“Health insurance will become relatively less expensive for people with chronic conditions and relatively more expensive for healthier people,” said Robert G. Cosway, an actuary at Milliman, the firm that conducted the study.

Study: Healthcare Law Will Raise Some Premiums (New York Times 3/28/13)

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