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Mr Rick: Not sure what you mean by "increased risks"?
There are really only three aspects of Obamacare that would affect insurance company rates they charge employers who already had coverage for employees or for equivalent plans for companies that are about to get coverage for employees:
1) The insurance plans can no longer be capped at $1,000,000 lifetime per person
2) Children under 26 now are eligible to be covered on parents plans
3) Availability of contraceptives for women
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Originally Posted by droopy0021
Other than community rating, essential health benefits and no more medical underwriting....
These do impact premiums on both existing groups and new (at least in the 2-50 sized groups).
I agree that Community Rating will have an affect on plan rates. But I don't think it has to do with Increased Risk. Insurers now have to treat each Small Company as a part of a larger pool consisting of all small companies they insure. So if one company has one employee who gets very sick that won't force that company's plan costs to skyrocket. Instead that cost gets absorbed into the larger pool. Insurers understand full well how to assess risk for large pools of employees and set rates accordingly. Plan costs in the aggregate may go up as a result but not necessarily. It is likely only because currently insurers can incent small companies with large health expenses to abandon health insurance completely (sort of a post-condition screening) thus forcing those costs onto individuals, state and federal government.
I agree that forcing all plans to cover essential health benefits will increase plan costs for small companies whose prior plans didn't include them. But I don't think this has to do with Increased Risk. The costs for essential health benefits are well known because they are fairly standard for large company plans.
Eliminating medical underwriting may very well increase the costs of some or all existing small company plans but again not because of increased risk. Insurers are very well aware of the estimated costs for large pools of unscreened people. They will now be grouping them all together and charging one rate. The same as allowing individuals with pre-existing conditions to buy insurance at the same rate as other people in their age group and smoking status.
edit: the one caveat for all of the above is that currently insurance companies may not know the ultimate medical costs for people who have exceeded the $1,000,000 lifetime cap. And there is always the risk that some new type of deadly disease could extend the ratio of people who exceed the previous $1,000,000 cap. So this type of "Increased Risk" could very well impact plan rates in the future...
Last edited by Mr Rick; 01-23-2014 at 12:18 PM.