More information from the report issued by Society of Actuaries

More information from the report issued by Society of Actuaries

Earlier this month the Society of Actuaries issued an 83 page report named, “Cost of the Future Newly Insured under the Affordable Care Act (ACA)”.   This report has been referenced many times in recent days and some debate the validity of the projections and factors used in the analysis.

It won’t be long before we know the costs for individual insurance starting January 1, 2014.  In just a few months this data will become available for everyone to see.  As a result of new rating regulations many are expecting their rates to increase significantly, based on where they are currently in the spectrum of risk today.  The young and healthy are going to be impacted the most.  Since gender will not be a factor in 2014, young males will see an even greater impact than young females.

Unfortunately, the study by the Society of Actuaries projects significant increases BEYOND 2014.  Here is an info-graphic by State.  Nationwide increases are expected to be 32% on average.  Kentucky is close to the national average at 34%, but Indiana is projected to increase 68% and Ohio 81%!

These projections are for non-group coverage (individual market only), so employer groups are not included in this report at all.  It seems likely that the difference in base premium costs between small group insurance and individual insurance will grow fairly significantly in the years to come

Open info-graphic here.