Insurance premiums could increase under Obamacare

7:01 AM, Mar 27, 2013   |    comments
(Adam Berry/Getty Images)
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(AP) -- A new study says insurance companies will have to pay out an average of 32 percent more for medical claims under President Barack Obama's health care overhaul, which could increase premiums for some Americans, reports the Associated Press.

The news service says people who are uninsured, or who buy a policy directly from an insurance company, should take notice. Those with an employer plan likely don't have much to worry about.

The study by the Society of Actuaries says claims costs will likely increase because sicker people will join the insurance people. The healthcare law prohibits insurers from turning away people with pre-existing medical problems, effective Jan. 1.

The increase in spending on sicker people and other high-cost groups will overwhelm an influx of younger, healthier people into the program, the report said.

AP reports that the Obama administration challenged the design of the study, saying it ignored cost relief strategies in the law, such as tax credits to help people afford premiums and special payments to insurers who attract an outsize share of the sick.

(Atlanta Business Chronicle)

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