Health insurance exchanges cause a drop in coverage costs
As health insurance exchanges begin to take form throughout the U.S., these organizations are announcing that rates for coverage will be considerably lower than expected in many parts of the country. These exchanges are meant to begin open enrollment nationwide beginning in October of this year, with the policies they sell going active on January 1, 2014. Critics of the Affordable Care Act had warned that health insurance rates would skyrocket due to the federal law, but exchanges are beginning to contradict these warnings.
Federal exchanges may help lower costs of certain plans
There are several factors that affect the overall cost of health insurance in many parts of the country. State regulations often have a significant impact on rates and these regulations tend to differ from state to state, leading to lower rates in one part of the country and higher rates elsewhere. While regulations play a major role in the cost of health insurance, many of the exchanges taking form throughout the U.S. will not be susceptible to state laws alone, as the federal government will be managing these organizations. The fact that so many exchanges will be run by the federal government could be part of the reason behind plummeting health insurance rates.
Maryland announces 33% reduction in coverage costs
Maryland is the most recent state to announce that health insurance rates would be lower than expected. According to the state’s Insurance Commissioner, Therese Goldsmith, rates for plans sold through the state’s health insurance exchange would be 33% lower than had been previously predicted. A recent report from the Department of Health and Human Services notes that rates were lower than had been predicted by the Congressional Budget Office, which could help dispel some of the criticism that has been levied against the Affordable Care Act in recent months.
Affordable Care Act may not be responsible for rising health insurance rates
The Affordable Care Act is a controversial issue throughout the country due to the new regulations it introduces to the health insurance sector and various other provisions. One of the problematic issues with the federal law was the expectation that it would lead to significantly higher health insurance rates. While the federal law is not the only thing that affects these rates, it has managed to show that its impact on health insurance is not likely to make coverage significantly more expensive for consumers.