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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