Consumers Starting to Get Sticker Shock?
Shouldn’t we have seen this coming? My answer is, “Heck yes!” If you simply look at the logic of the law, there was no question premiums were going to go up significantly in 2014.
This is the year where the most dramatic cost containment strategies are being removed. For example, we are prohibiting pre-existing condition exclusions, eliminating annual maximum limits on essential health benefits, and guaranteeing coverage for all comers. Not to mention we are packing plans full of more rich “essential health benefits.”
This combination of market reform could only mean one thing, and that one thing is higher premiums. Cost containment strategies, are just what they sound like. They are strategies that carriers put in place to control the amount of risk or “cost” they would take on. By controlling risk accurately, they could then set premiums they knew would cover the risk. By eliminating or prohibiting these cost containment strategies, the carriers have to take on more risk and to do that they must raise premiums.
So, for consumers that are just figuring this out, I apologize, but the writing was on the wall. Now is the time to be proactive. Find a trusted advisor and have them review your options moving forward!