Health Insurance Articles
Factors That Change New York Health Insurance Rates
2011-07-31
New health insurance legislation is expected to have an impact on New York health insurance rates for the years to come. The main health insurance factors have not had a severe impact but are expected to have an impact as new legislation comes into full force and effect.
One of the main factors that will be influencing New York health insurance rates is the Affordable Care Act. The act was passed with the goal of making health insurance accessible to everyone. One of the many changes that have already taken place is that health insurance companies are now prohibited from increasing health insurance rates unreasonably. New York health insurance companies that impose unreasonable hikes to health insurance rates will face severe consequences.
The main consequence that health insurance companies will face if health insurance companies unreasonably raise their rates is that they will be unable to participate in health care exchanges. Beginning in 2014, health insurance exchanges are going to be the primary marketplace where health insurance companies offer their health benefits to prospective insureds. Health insurance companies that are prohibited from participating in these health insurance exchanges will lose a lot of money. Inability to participate in these exchanges will have a tremendous impact on a health insurance company's bottom line. To remain eligible for participation in exchanges, it is unlikely that health insurance companies will be making any unreasonable increases to their health insurance rates any time in the near future.
Another factor that is expected to change health insurance rates slightly is that New York health insurance companies will be required to provide coverage to people with preexisting conditions. No matter what type of preexisting condition an insured has, health insurance companies in New York will be required to offer health insurance to people with preexisting conditions. To remain eligible, the insured must disclose the condition when applying for insurance. Experts believe that by opening the floodgate to insureds with preexisting conditions, health insurance rates will climb simply because the companies need to buffer the additional costs of providing coverage to people with known health problems. What impact this will have on rates remains to be seen. However, many experts believe that the additional costs will be absorbed well due to the mandatory enrollment requirements.
Based upon the new legislation that has come into play, New Yorkers can expect to see several upcoming changes to New York health insurance. Whether these health insurance factors will have a long-term impact on health insurance rates remains to be seen. Residents of the state of New York can definitely look forward to sweeping changes that will have an impact on insurance rates now and in the future.
