Congressional leaders deride health reform law

Posted on: Friday, March 08, 2013

If insurance customers were already worried about how the Patient Protection and Affordable Care Act would affect their insurance costs, a recent study may not help alleviate their concerns.

Recently, legislators in several congressional committees - namely House Energy and Commerce, Senate Finance as well as Senate Health, Education Labor Pension - released an analysis that asserts the PPACA will boost premiums exorbitantly for the average American family.

After reviewing more than two dozen studies, all of which pertain to the PPACA and its implementation, the joint committees say that consumers - particularly younger individuals - will see their insurance premiums rise from an average of $650 each year to more than $1,800 annually - a 189 percent rise.

The report indicates that the construct of PPACA is what serves as the problem, as the requirements are too onerous for Americans who may be struggling financially.

"Price controls and requirements to purchase government-approved plans are the lead contributors to more expensive premiums," the report stated.

It added that more than $165 billion in new taxes will be imposed as a result of the health reform law - primarily on medical devices, prescription drugs and healthcare policies - an expense that ultimately consumers will have to shoulder.

Meanwhile, some representatives within the health insurance industry have made similar forecasts. America's Health Insurance Plans recently derided the health reform law, saying that the law could cause rates to rise exorbitantly, which may lead to "rate shock."

How customers ultimately respond to the PPACA may have an impact on insurance leads. But agents should keep in mind that these are all predictions of what could happen, not what will happen.

Posted In: Insurance News, Health Insurance

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