Won’t all these changes increase my health care premiums?
How the changes will affect existing insurance costs is a source of fierce debate. Over all, the Congressional Budget Office has said that by 2016, the provisions in the new law will result in little if any increase in premiums for people with employer-sponsored plans. People with nongroup plans (those not offered by employers) may see increases, but more than half the enrollees in nongroup plans will qualify for federal subsidies, lowering costs for middle- and moderate-income families on average by about 60 percent, the C.B.O. said.
Beginning in September, insurance firms will face new limits on administrative costs and executive compensation. Violations will trigger rebates to consumers. In addition, the overhaul package includes additional money for states to review unreasonable increases in insurance rates.
“Middle- and moderate-income families will have tremendous help in the pocketbook as a result of federal subsidies that will significantly lower the out-of-pocket burden,” said Ron Pollack, executive director of the consumer health group Families USA. “And there is now a process where the federal government as well as states will review premium increases to determine their reasonableness.”
