Why Will Health Insurance Rates Go Up?

  1. 12689 POINTS
    Ted Ratliff
    Owner, SFS Associates,
    Because of the affordable care act insurance companies must cover everyone regardless of their health.  This will increase claims.  The companies must also cover pregnancy for all women which is an increased exposure in many cases.  Companies can no longer charge according to age, the rates will be determined by community rating.  As a result younger people will have their rates go up while some older people may have their rates go down.  All of this increased exposure means more claims.  The companies will be forced to raise rates to keep solvent.
    Answered on May 30, 2013
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  2. 1492 POINTS
    Jeff Davis
    Insurance Advisor, Lordship Insurance Services, California
    It is inevitable. The new health care changes coming into effect in 2014 will make everyone insurable, regardless of their current health condition. Health insurers based their rates on a number of factors which include what is called "insurable risk". If you are too high a risk they can elect to not cover you. That will change. Conversely, since their risk exposure will increase it stands to reason the cost to insure others will increase as well.
    Answered on May 31, 2013
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