Conversation

I've seen several explanations for why #ACA is causing health insurance rates to skyrocket. However, the primary cause is already known:

Both government and insurance industry organizations expected that YHAs (young, healthy adults) would pay into the system, but not use the services. Instead, they found out that YHAs didn't use medical services because they could not afford them. As soon as they obtained coverage, they started using medical services. This unexpectedly high usage drives up insurance prices for everyone.

Secondarily, some states refused to extend #MedicAid to more low-income people, so in those states, people were pushed into the insurance pool. These were people who were previously uninsured and unlikely to use non-emergency medical care, much like YHAs, except they are in worse condition.

In states where MedicAid coverage was extended, taxpayers are being asked to fill in. If state budgets are stressed, some of those people are being pushed to private insurance instead of taxpayer-supported coverage.

In summary: both government and industry organizations started with unrealistic expectations, which led to artificially low rates. Those rates will rise as more people use the insurance they are now required to pay for.

Public

Notices