Every state is expected to have a health insurance exchange up and running by 2014. Insurance companies who would like to have their plans offered through the exchanges are going to have to make improvements to the benefits in those plans. This will result in more coverage for consumers. It might also raise the cost of premiums.
Part of the Affordable Care Act include requirements that must be met in order for insurance companies to participate in the state health insurance exchanges. Many insurance companies are going to have to make improvements to the benefits that they currently offer in their plans. This is good news for consumers, who will soon be enjoying more coverage from their insurance plans.
In order to be in the exchanges, a health insurance plan must cover at least 60% of the cost of a person’s health care. Right now, many health insurance policies exclude coverage for certain types of pre-existing conditions. Not all of them cover mental health care, or substance abuse treatment. Most are excluding coverage for maternity, and requiring people to purchase and extra rider for that type of coverage. This, of course, will increase a person’s premium.
In California, a state law requires all health plans to include coverage for maternity starting in July of 2012. This law helps consumers that live in California. The requirements for the health insurance exchanges would expand that protection to all consumers in the United States. This is great news for families or for couples who want to start a family in the next few years!
It is expected that health insurance deductibles will go down after the exchanges are in place. Out of pocket limits will have to go down as well. It is also expected that the cost of premiums will increase.
This is because insurance companies will no longer be able to “cherry pick” the healthiest, (and least expensive to cover), customers. This was a tactic that insurers have been using for years in order to increase their profits. Soon, they will be expected to cover people who have serious illnesses, too. This will raise the amount that the insurers have to spend on health care coverage.
What will keep things in balance is that, in 2014, everyone, healthy or not, will be expected to have health insurance coverage. So, premiums will increase a bit, but not by an excessive amount. In return, consumers are going to see a lot more of the things that are currently excluded from their health insurance coverage become something that is covered.
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