When the ACA was enacted in 2014, it changed the way that insurance companies did business. Prior to the ACA (also called marketplace or Obamacare), insurance companies were able to either deny people coverage or put them in risk pools based on their health and with the new law, companies cannot discriminate based on preexisting conditions anymore. Although it is a good thing that everyone is able to get coverage now without being denied, it has put everyone in the same risk pool which has increased the cost for everyone. If you compare this to your car insurance, what if your car insurance company had everyone pay the same rates, regardless of tickets and driving records. Everyone’s car insurance rates would go up because the good drivers would start paying the same rates as the bad drivers instead of the bad drivers getting discounts. By the ACA eliminating risk pools, healthy individuals have taken on the risk of individuals with large claims and pre-existing conditions.
Another factor that has affected the cost includes mandatory coverages. ACA says each plan needs to cover drug and alcohol rehab, mental health, abortion and maternity. Again, although these are good things, not everyone needs these coverages, so you are paying for them even if you don’t need them.
Which plans have to follow the a ACA rules? Any plan that is ACA compliant which includes anything you are getting off of healthcare.gov or any group plan. You still have options that are not ACA compliant and that isn’t always a bad thing. That means that your coverage might be underwritten based on your health and may not cover things you don’t need. Do you need help deciding what plan is best for you? Call a local agent and they can walk you through your options!