Affordable Care Act may raise health insurance costs throughout the US
With the U.S. presidential elections little over a week away, more attention is being drawn to the potential impact of the Affordable Care Act, the health care law that was championed by President Obama. The law has generated a significant amount of controversy and has divided the U.S political landscape since its passage in 2010. Now, new reports concerning the impact of the law are emerging, suggesting that health insurance costs may become significantly higher in some states.
Nevada consumers may see rates rise by an average of 30%
This is the case in Nevada, according to a study from Gorman Actuarial, as well as other reports from the University of Minnesota and other organizations. The Gorman study predicts that health insurance costs in Nevada could rise by an average of 30% when the Affordable Care Act becomes fully active in 2014. The spike in health insurance costs will mostly affect individual policyholders. The Gorman study suggests that the myriad regulations and standards established through the Affordable Care Act are the reason behind growing health insurance premiums.
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Report highlights cuts to Medicare program
A study from the University of Minnesota shows that the health care law will make more than $716 billion in cuts to the country’s Medicare program between 2013 and 2020. The study shows that Nevada’s share of this provision will come in at $4.1 billion, significantly reducing the number of enrollees the state can support and limiting the benefits for those already in the program. The cuts made to the Medicare program are meant to help provide health insurance coverage to the younger population.
Health insurance exchanges may provide relief from high insurance prices
Though the studies from Gorman Actuarial and the University of Minnesota paint a dire picture for the U.S. health care system, the Affordable Care Act will institute innovative health insurance marketplaces, called health insurance exchanges, that will provide affordable coverage to consumers. These exchanges are meant to be an alternative to private insurance companies, who are being pressured to comply with federal standards and, in response, raise prices on coverage. The exchanges provide access to affordable policies that offer many of the same benefits coming from these insurance companies, but at a fraction of the price, claimed by advocates of the law.