The Obama reiterated that the Affordable Care Act (ACA) is helping to reduce health care costs even after Health and Human Service (HHS) Secretary Kathleen Sebelius stated that some newly insured residents could experience higher health costs in the coming years.
Secretary Sebelius said that some ACA provisions could cause health insurance premiums to rise in the individual market, particularly for men and younger individuals which was also the conclusion of a report released by the Society of Actuaries.
The report said that health insurers likely will have to pay an average of 32% more for medical claims under the ACA, which potentially could result in higher insurance premiums for some consumers. For the report, researchers analyzed a model of the effects of the ACA’s insurance expansion in the individual market in each state.
The report found that while medical claims costs per individual policyholder in some states would decline, a large majority of states would see double-digit increases in claims costs. Its authors explained that the costs would increase largely because an ACA provision scheduled to take effect on January 1, 2014 prohibits insurers from denying coverage to individuals with pre-existing medical conditions, which could potentially add more costly, sicker individuals to the insurance pool.