Sharp Rise Expected in Individual Insurance Claim Costs

Insurance companies will have to pay out an average of about one-third more for medical claims on individual health policies under the Affordable Care Act, according to a report by the Society of Actuaries. That may well raise premiums for some Americans buying individual plans.

By 2017, the estimated increase would be 33.8 percent for Texas, 62 percent for California, about 80 percent for Ohio, more than 20 percent for Florida and 67 percent for Maryland. The report cited higher claims costs because sicker people are expected to join the risk pool.

 

Posted in Insurance/Benefits.