Health insurance premiums are plummeting in New York
Health insurance rates are rising throughout the U.S. as insurers prepare to comply with the various regulations being introduced with the Affordable Care Act. These regulations are placing more stringent requirements on insurers, effectively raising the costs associated with administration and general business while also lowering their ability to generate profit. In New York, however, health insurance rates for individuals could plummet due to the state’s health insurance exchange program.
Officials approve 17 affordable plans from insurers
New York officials have approved health insurance plans from 17 of the state’s insurers, including UnitedHealth and WellPoint. These plans will be sold through the state’s exchange program, which is set to begin open enrollment in October of this year. The exchange is designed to provide consumers with access to affordable coverage plans and caters mostly to the individual market. State officials have taken steps to ensure that only the most affordable plans are included in the exchange and have also worked to ensure that these plans do not sacrifice coverage for the sake of lower premiums.
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Rate decrease caused by state’s insurance exchange
According to Governor Andrew Cuomo, health insurance rates for individuals could drop by at least 50% due to the exchange program. The Governor suggests that many people that currently pay at least $1,000 for their coverage could pay as little as $308 for the same level of coverage that also includes certain benefits that are required by the Affordable Care Act. Governor Cuomo suggests that the exchange will offer the real competition that is needed for health insurance rates to continue dropping throughout the state.
Rate shock may not be an issue for New York
Many insurers throughout the U.S. have warned of the impending rate shock that will be caused by the Affordable Care Act. These insurers suggest that health insurance rates will skyrocket when the law if fully enacted in January 2014. In some states, such as California, rates have already begun to rise, adding credence to the warnings raised by insurers. In New York, however, rate shock is not expected to be a significant issue, as long as consumers purchase their insurance coverage through the state’s exchange program.