Sat Feb 16, 2013, 04:39 PM
Newsjock (11,733 posts)
Geography to play larger role in health premiums
Source: Associated Press
Whether it's the densely populated Southern California coast or the mountains of rural Northern California, geography is going to play a larger role in the cost of health insurance under the federal health care overhaul set to take effect next year.
Health insurers are facing new rules and restrictions on how they set prices as part of the Affordable Care Act's aim to expand coverage to millions of Americans. No longer can insurers deny coverage because of a preexisting condition or place lifetime limits on medical care. While a person's age will remain a factor in setting rates, older customers cannot be charged more than three times what younger customers pay. ... All this leaves geography as one of the few ways insurers can adjust premiums.
... One health plan rated the difference between east and west Los Angeles County by a factor of 50 percent, which could mean a difference of hundreds of dollars for a family of the same size and whose members are the same age.
... Consumer advocates are concerned that smaller regions will give health plans the opportunity to target poor, rural or less healthy communities with higher rates, similar to how insurance companies have charged higher auto rates in some communities deemed higher risk.
Read more: http://www.sacbee.com/2013/02/16/5195509/geography-to-play-bigger-role.html
3 replies, 558 views
Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Geography to play larger role in health premiums (Original post)
|The Magistrate||Feb 2013||#2|
Response to Newsjock (Original post)
Sat Feb 16, 2013, 09:45 PM
subterranean (2,422 posts)
3. Would the subsidies make up the difference?
As I understand it, people who buy insurance from the exchanges will pay a certain amount based on income, and the government will subsidize the rest of the cost. So it seems logical to assume that the Federal government would be paying the difference in the higher-cost geographic areas (although we'd be paying it indirectly through taxes). But I could be wrong about that.