As you know by now almost a year ago the Patient Protection and Affordable Care Act (PPACA) was signed into law. Whether you are for the law, against the law, Democrat or a Republican is not relevant here. What is relevant is this law is NOT affordable. Not for the policyholder, not for the tax payer and not for the country.
I have been an insurance broker for almost ten years and have been in the industry for 15 years and I have never seen rate increases like I have seen in the last twelve months. I have group health plans that had increases of over 35% this year. I have individual plans, depending on the carrier from as low as 25% to as much as 40%. Does that seem affordable?
According to Americans for Tax Reform, there are at least two dozen new or higher taxes in the health care law. Some of my favorites are
-surtax on investment income
-a hike in Medicare payroll tax
–Flex Spending Account tax (see my blog from January 7, 2011)
And this one might be the best of all…
-a tax on medical device manufacturers
Now, here is the part that might be the scariest. I have a client who I wrote on a Health Savings Account plan (H.S.A). His daughter has a pre-existing condition. The standard rate on the plan was $479. Prior to the PPACA, the daughter would have been denied, and probably referred to the state high risk pool. As far as the bill goes it seems like a good idea not to deny children health insurance right?? The law as far as I can tell has no maximum on what you can rate a policy for the condition so the carriers do what they can to keep themselves profitable. I have seen substantial increases on this part of the law. This client in particular after the plan came back from underwriting was $1916.88. That is a 400% rate increase ( and I have seen higher).
This bill seems to try to address everything except the affordable part. I ask our President, our Congress, and my fellow Americans, what happened to the A in the PPACA?
Thanks for reading.
Eric Wilson is the President of I Sell Health, Inc. A Chicago based company. He can be reached toll free at 888-448-5370 or online at www.isellhealth.com