Monday, August 20, 2012

Washington Post - Impact of Health Reform Law on Premium

On August 10 the Washington Post examined the ACA and it's effect on health care premiums.  For the next five posts we will examine the five factors that could lead to higher premiums for some/many/all depending which category you fall into.

Factor One:  Premiums could increase for some and decrease for others because of what is known as age banding.  Currently most states (including California) band on a 5:1 ratio.  This means that older individuals pay 5 times more than younger individuals.  Starting in 2014 the new age band ratio will be 3:1 meaning that older individuals will pay 3 times more than younger individual.  In a practical sense younger individuals will pay more for the same insurance and older individuals will pay less.

Look for more information on the health care laws impact to come.  If you would like to reach us at Ansa Insurance Services, you can either call us at (714)680-5900 or find us on the web at www.ansainsuranceservices.com .

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