Health Plan Cost for New Yorkers Set to Fall 50%

[babylonsister]

Health Plan Cost for New Yorkers Set to Fall 50%
By RONI CARYN RABIN and REED ABELSON


Individuals buying health insurance on their own will see their premiums tumble next year in New York State as changes under the federal health care law take effect, Gov. Andrew M. Cuomo announced on Wednesday.

State insurance regulators say they have approved rates for 2014 that are at least 50 percent lower on average than those currently available in New York. Beginning in October, individuals in New York City who now pay $1,000 a month or more for coverage will be able to shop for health insurance for as little as $308 monthly. With federal subsidies, the cost will be even lower.

Supporters of the new health care law, the Affordable Care Act, credited the drop in rates to the online purchasing exchanges the law created, which they say are spurring competition among insurers that are anticipating an influx of new customers. The law requires that an exchange be started in every state.

“Health insurance has suddenly become affordable in New York,” said Elisabeth Benjamin, vice president for health initiatives with the Community Service Society of New York. “It’s not bargain-basement prices, but we’re going from Bergdorf’s to Filene’s here.”

“The extraordinary decline in New York’s insurance rates for individual consumers demonstrates the profound promise of the Affordable Care Act,” she added.

more...

http://www.nytimes.com/2013/07/17/health/health-plan-cost-for-new-yorkers-set-to-fall-50.html?pagewanted=all&_r=1&

[vinny9698]

1. Stands to reason bigger pool

As more people enter the market and the cost and profit restrains are applied, it stands to reason that costs will come down.

[BlueCheese]

2. Interesting article.

A couple of points I picked up:

Apparently, New York already requires that insurers take everyone, regardless of pre-existing conditions. Without the individual mandate, this led to incredibly high premiums.

The article also says that only 17,000 people in New York currently buy individual insurance, with about 2.6 million uninsured. As many as 615,000 people are expected to buy insurance after the ACA takes effect.

So the good news is that this is an extra 600,000 people with insurance. The not as good news is that there will still be 2 million uninsured in New York. But this is the tradeoff we expected-- the individual mandate results in a bigger pool, with lower premiums.