Is there anything in ACA to prevent insurance companies from jacking up prices

[MoonRiver]

for people with pre-existing conditions?

[BlueCheese]

1. Yes...

The ACA specifically prohibits insurance companies charging people more for pre-existing conditions.

One possible consequence is that they'll decide to charge everybody a little more instead. As far as I know, that's not prohibited.

[MoonRiver]

2. Thanks.

It is a HUGE improvement over insurance companies being able to indiscriminately raise rates on people they want to force out of the system.

[sdfernando]

4. Yes I believe there is

Doesn't this law require 80% of premiums spend on actual health care and only 20% for overhead, which I think would include profits? Isn't that why a big refund is coming to a lot of people??

[BlueCheese]

7. You're right about that.

My feeling, however, is that once the mandate kicks in, the individual market will be filled disproportionately with people with pre-existing conditions, while relatively healthy people will choose to pay the tax (which is minimal early on). Thus the entire market will be filled with high-risk people, causing premiums to be "honestly" high.

[aintitfunny]

3. Insurance companies must spend 80% on medical

I think it is 80% - and if they do not reach that threshold they must rebate the policy holders. The 20% balance is for overhead and profit. Just read that folks in Michigan are being rebated a little over $200 each.

[HopeHoops]

5. Yes.

[AnotherMcIntosh]

6. They can and will jack up prices for everybody, including those with pre-existing condition.

Their profits are limited to a percentage based upon costs.

But to get around that, all they have to do is enter into sweetheart contracts with their excutives or related parties to increase their costs and then raise their prices accordingly.