Wednesday, September 17, 2014

Jason Chiu: New Healthcare Laws May Force Americans to Shop Around

            With the Affordable Care Act in place, many of its users may find it wise to seek other healthcare insurance options, before renewing the plan under the act. Although the system is set up to encourage Americans to renew the policies they bought last year, recent data analysis from the McKinsey Center for U.S. Health System Reform shows that many premiums are being raised by double digit percentages within many of the most popular healthcare plans available. This forces Americans to make a tough call: bite the bullet and pay the higher premium to keep the same doctor and hospital coverage or risk losing this to save some money; the downside being that the cheaper plans often provide a more limited coverage group of doctors and hospitals.

            Overall, the average increase in price of a silver plan (must cover 70% of average patient’s medical costs) has gone up 8.4%. However, there needs to be further refinement in this study to get a more accurate picture of what is going on. The McKinsey database collected information from only 18 states and Washington, D.C. Hopefully, as more data is released, researchers can provide an even more accurate account of these rates. Going forward, many feel that despite the marketplace being more elastic than ever before, few will actually mobilize and return to the marketplace to find a new plan. However, if these rates continue to increase, it will be very interesting to see how the health insurance market is affected.


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