Health Insurance Articles

How Legal Challenges To Health Reform Could Affect Insurance Rates

2011-08-17

It's no surprise that health care is such a hot button topic in the United States. The government and the public have been debating the health care issue for several decades with changes being made all the time. However, in just the last couple of decades, health insurance costs have risen astronomically, making it extremely difficult for many individuals and families to obtain health insurance. Some companies have even stopped offering employees health care as part of their benefits. The fact remains that health insurance is an absolute must for most people in order to be able to see the doctor and get the proper medications. Without it, the out of pocket costs could be quite high. Congress stepped in and passed the Affordable Care Act which is meant to provide more options for all American citizens. But there have been health reform challenges made from a few states and people are wondering how that will affect insurance rates.

It's difficult to really detail how the health reform challenges to the Affordable Care Act will affect health insurance rates because the rates constantly fluctuate. Many states are criticizing the reform, stating that it's unconstitutional because it ultimately affects interstate commerce. The constant debate and challenges have already made somewhat of an impact even when the reform act was first passed. Many people saw their insurance rates rise as insurance providers feared that their customers would leave to public options once the bill was complete implemented. In order to try and continue profiting, these insurance companies raised rates on their customers.

On the other hand, new challenges now that many of the reform laws have been implemented might have the opposite effect. If all of the laws are implemented, there will definitely be a shift in insurance customers, as some will move to more affordable options and take advantage of more coverage. But if these challenges continue to pour in, which is most likely going to occur, insurance companies may start to drop their rates. Without knowing for sure if any of the states or attorneys can have an impact on overturning the act, insurance companies may try to drop rates in order to maintain their current customers. Additionally, they will try to lure more people into purchasing one of their policies with the more attractive low rates. This could mean significantly lower health insurance rates at least for the next couple of years.

There is much debate circulating the Affordable Care Act and what it means for insurance companies, businesses and individuals, especially with reference to the costs. Only time will tell what kind of an effect the act will have on health insurance premiums and rates.