Part 3
If you have read the past two posts you would know that the Washington Post on August 10 had an article on the effect of the health care law on premiums and noted five factors that could/would raise premiums for most individuals.
The third factor is closely related to the second factor but often gets confused as being the same thing, yet it is quite different. Factor 2 relates to what is known as community rating. Everyone within a age band pays the same rate. Factor 3 is the part of the law that forces health carriers to accept everyone regardless of preexisting conditions. What this means is that carriers can not turn down anyone and their premiums must be the same as all the healthy individuals.
The end result is that those healthy individual will need to make up the cost difference for all the unhealthy individuals that the carriers were forced to accept.
We will continue to update you on the factors that will increase premiums in future posts so be on the lookout. If you have any questions or would like to get more information you can reach us at (714)680-5900 or find us at www.ansainsuranceservices.com .
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