How insurance companies plan to pay for ACA coverage without raising taxes
The American Insurance Association is predicting that premiums will rise as much as 20% for some policies as a result of the law’s insurance mandates, despite some of the health-care law’s protections.
The group’s report comes as Republican governors and insurance companies are facing pressure to provide greater subsidies for Americans without employer-sponsored coverage.
The AIA estimates that more than 15 million Americans will lose their coverage under the law, with many states that didn’t expand Medicaid likely to see increases of up to 25%.
Insurance companies have responded by saying that the law does not require them to provide coverage to all Americans.
“We are going to continue to provide premium assistance to all our employees, regardless of their state of residence,” a senior AIA official told reporters.
“Our plan is to continue working with state and local governments to implement the Affordable Care Act as quickly as possible.”
The AIG report comes in a day after the American Medical Association and other medical associations urged the federal government to immediately expand coverage to millions of Americans who lack employer-based coverage.
Insurance companies are not expected to raise rates for the time being, but they are expected to spend billions of dollars to improve their coverage and to offer incentives to help people find affordable coverage.
“In addition to increasing health care costs for employers, we are seeing that health insurance is increasingly unaffordable for many people,” AIA CEO Dan Diamond told reporters at a briefing in Washington, DC.
It’s also an issue for many individuals.” “
This is not just an issue of higher premiums for employers.
It’s also an issue for many individuals.”
Diamond also said that insurers are not going to be able to expand their policies and are likely to face a shortfall in funding over the next several years.
“They are going the way of the dinosaurs, which is to increase premiums for people without employer coverage,” Diamond said.