Health Insurance Rates Are Soaring – Broker Survey
If you listen to the news coming out of Washington about Health Care Reform (AKA Obamacare), we should all be sitting in a circle, holding hands and singing Kumbaya because according to Washington, Obamacare is working just fine. But the real truth coming out of the trenches by insurance brokers who sell health insurance for a living tells a whole different story. Brokers say health insurance rates are soaring. In many states, healthcare increases are in the triple-digits.
This news comes from a recent broker survey conducted by Morgan Stanley’s health care analysts. Broker’s who were interviewed said insurance premiums are skyrocketing in both the small group and individual markets. Brokers also said they are seeing increases on average of 11-12% in the small group market and in the individual market, increases of 10 to 50% and more. All attribute these increases to changes under Obamacare
Individual Health Insurance Premiums Soar 56%
In another independent survey conducted by Ehealth – an online seller of health insurance plans – noted that individual health insurance premiums are much more expensive this year as compared to 2013. According to Ehealth, the average premium for an individual health plan sold by this year was $274 per month, a 39 percent increase. The average family plan was $663 per month, up 56 percent from a year ago.
Some of the states seeing the largest increases are Delaware with a 100 percent increase. New Hampshire with a 90 percent increase, Indiana at 54 percent, California at 53 percent, Connecticut at 45 percent, Florida at 37 percent, Michigan at 36 percent, Georgia at 29 percent, Kentucky at 29 percent, and Pennsylvania at 28 percent.
Group Health Insurance Premiums Up More Than 25%
Brokers say the small business market is seeing unprecedented increases as well – Some states more than others, but all states across the board have seen an increase in group health premiums. Among the states with the largest increases are: Washington, a 589 percent increase. Pennsylvania (a 66 percent increase, California (37 percent), Indiana (34 percent), Kentucky (30 percent), Colorado (29 percent), Michigan (27 percent), Maryland (25 percent), Missouri (25 percent), and Nevada (23 percent).
The Obama Administration reports that Americans should not worry about these temporary health insurance increases and have pointed out that health care reform subsidies will offset any increases in cost. Pricing fluctuations will eventually settle down once everyone conforms with the new Law.
As one anonymous broker put it, “Health Care Reform is killing the health insurance industry. This this Law is truly a train wreck.”
If you agree that Health Care Reform is hurting your business and don’t know what to do about it, give our office a call or submit an inquiry.