The Employee Management Team

Where Are Health Insurance Rates Going?

Many business owners are being advised by their insurance agents to purchase or renew their policies now before the small group health insurance skyrocket next year due to the Affordable Care Act. But will this really be the case? According to Healthcare 411 from 10 News in Tampa, some are predicting the opposite: the rates will actually fall.

Quoting from the report aired on September 25, 2013, "Kevin MCarty, Florida's Insurance Commissioner, is predicting a much larger increase under the Affordable Care Act.  In documents released in July, he suggested health insurance rates on the individual market could jump 30-40% in 2014."

But many feel that prediction is overblown. The Rand Corporation, a non-profit research group, recently released a report looking at the potential insurance costs for small businesses — fewer than 100 people in ten states, including Florida. The study found the cost of equal plans would likely drop about six percent under the Affordable Care Act.

"The main reason insurers can lower rates over time is that they have a larger base to spread the risk over," said Tom White, an insurance agent interviewed for the story. "And that's what we're really trying to do — get everyone insured."

Check out the report here.

I agree with Mr. White. Rates will be affected by the number of currently uninsured individuals who become insured. And to quote an old phrase: "the more the merrier".

Rick Ratner,
President
EMT